Stock futures are rising slightly as Wall Street appears to be losing a week amid high inflation

Stock futures rose slightly Thursday night as Wall Street appeared to end the week positively following a historic inflation report.

Futures contracts linked to the Dow Jones Industrial Average ticked up 51 points. Those for the S&P 500 and Nasdaq 100 increased by approximately 0.2% and 0.3%, respectively.

The movement in futures comes after the stock market appears to have resisted the hottest 30-year inflation report on Wednesday. The major indices are on track to snatch five-week winning streak, but are still within striking distance of their recent records.

Randy Frederick, CEO of Trade and Derivatives for the Schwab Center for Financial Research, said year-on-year comparisons with an abnormal 2020 and rising wages may have weakened the response to the Inflation Report and allowed the Federal Reserve to maintain its accommodative stance beyond inflation alone should indicate.

“Big numbers get big headlines, and yes prices are higher, but you also have wage increases that are about as much as inflation is. So inflation is definitely real, but the impact is not quite as serious as people think,”[ads1]; Frederick said.

The Inflation Report was the latest complication from economic data that investors have had to sort through in recent weeks, with some professional investors looking optimistic towards 2022.

“I just think we’ve probably reached more disruption in the supply chain, and I think the labor market is going to free up a bit, as we saw with the job report last Friday,” said Brent Schutte, investment strategist at Northwestern. Mutual.

This week, there has been more dramatic action in the bond market, where the inflation report led to a sharp reversal of the recent decline in the 10-year government interest rate on Wednesday. The bond market closed on Thursday for Veterans Day.

On Thursday, the technology-heavy Nasdaq Composite rose 0.5%, while the S&P 500 rose slightly higher. The Dow fell nearly 160 points, pulled down by Disney’s slide after revenue.

Through Thursday, the Dow is down 1.1% for the week, while the S&P 500 and Nasdaq are down 1% and 1.7% respectively.

After a busy week of earnings and financial data, Friday is relatively easy for investors. Preliminary readings for the consumer mood in November and the September report on vacancies and labor turnover will be published on Friday morning.

Source link

Back to top button