Finance News

Inventory futures rise because the S&P 500 seeks to interrupt the report

A man walks past the charging bull statue near the New York Stock Exchange.

Almond Ngan | AFP | Getty Images

Futures contracts pegged to major US stock indices rose at the start of the overnight session on Sunday evening after the S&P 500 posted its best week since February and a new record on Friday.

Futures linked to the S&P 500 rose 0.1% and those linked to the Dow Jones Industrial Average rose 47 points. Nasdaq 100 futures trade around the flatline.

Stocks saw their best week in months on Friday, as investors took a more relaxed view of inflation and viewed the current US price acceleration as a temporary rebound rather than an ongoing economic threat.

The S&P 500 finished Friday with a record high of 4,280.70 while the Dow rose 237.02 points, less than 2% off its record high. While the Nasdaq Composite closed slightly lower on Friday, it rose 2.35% for the week, its best since April 9, and rose 4.45% for the month of June.

The weekly gains even came after the Commerce Department reported that the inflation indicator rose 3.4% in May, the fastest increase since the early 1990s.

Spikes in the core consumer spending index can cause heartburn among investors as the Federal Reserve likes to watch it for signs of inflation. Still, the increase actually fell short of what economists polled by Dow Jones had forecast, and reaffirmed for investors that macroeconomic price increases are likely to be temporary and manageable.

The next key economic data is the June job report that the Labor Department is slated to release on Friday.

Economists expect the number of non-farm workers to have increased by 683,000 in June. While such a robust figure would top 559,000 in May, it would still be below the 1 million some had hoped the U.S. economy could recover from the Covid-19 crisis.

Investors will also check the June report for signs of wage inflation as employers struggle to find workers to fill positions and pandemic-era unemployment benefits run out in some states.

A massive, bipartisan infrastructure deal appeared to be revived Sunday night after President Joe Biden made it clear on Saturday that he had no intention of vetoing the law if it comes without a separate Democratic Atonement Act favored.

The president, flanked by a bipartisan group of senators, said Thursday that after weeks of negotiations, the group had reached a billion-dollar deal to improve the country's roads, bridges, waterways and broadband. Democrats are pushing for a second bill that would include funding for issues such as climate change, childcare, health care and education.

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