U.S. stock futures were shaken on Wednesday as investors awaited notes from the Federal Reserve’s latest policy meeting for clues as to how officials view inflation and economic recovery.
Futures tied to the S&P 500 and the Dow Jones Industrial Average fluctuated between profit and loss, the tech-heavy Nasdaq-100 futures were also relatively flat. On Tuesday, the index reversed slightly after closing at a record high earlier in the week.
Signs that the economy is recovering from a slump caused by the coronavirus has spurred investors and helped propel the main index to unprecedented levels this week. The fast-paced rollout of vaccination combined with both financial and fiscal support is helping to recover in the labor market and the manufacturing sector. Money managers are betting that the economy will soon return to normal and encourage travel and leisure companies.
“We expect data to improve during this time and the preliminary signal is that recovery is certainly on target,”; said Hugh Kimber, global market strategist at JP Morgan Asset Management. A strong recovery in growth is forecast to be similar to a strong recovery in growth. ”
Some investors remain concerned that easing restrictions, coupled with suppressed consumer demand, could raise inflation and encourage the Fed to raise interest rates faster than anticipated.