Stock Futures Edge Up After S&P 500, Nasdaq Hit Records
U.S. stock futures were little changed Monday after the S&P 500 and the Nasdaq Composite reached record closes.
Futures tied to the S&P 500 edged up 0.1%, indicating that the broader market may hover near its all-time high at the open. Futures tied to the Dow Jones Industrial Average saw muted moves. Contracts tied to the technology-heavy Nasdaq-100 ticked up 0.1%.
Investor optimism has been bolstered by comments from Federal Reserve Chairman Jerome Powell, in which he used the bulk of his Friday speech to explain why he is still confident that this year’s inflation surge would prove temporary. Disrupted supply chains, temporary shortages and a rebound in travel have pushed inflation to its highest readings in decades.
Money managers have worried that prolonged inflationary pressures could eat into corporate earnings if businesses cannot pass higher costs on to customers, and could cause the Fed to accelerate interest rate rises.
A rise in interest rates—or expectations that the Fed might need to tighten policy—could cause Treasury yields to rally, said Lars Skovgaard Andersen, investment strategist at Danske Bank Wealth Management. A fast rise in yields could put pressure on large technology stocks that have done well in a low-yield environment, weighing on broader markets.
