Investors will get to see next week how the Fed is reading the latest inflation barometer and what changes in monetary policy, if any, central banks may consider.
US equity futures were trading higher in the morning after the S&P 500 hit another record high, despite a jump in consumer prices in May.
Major futures indices suggest a gain of 0.1% when the opening bell rings.
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The only economic report to end the week will be the University of Michigan’s preliminary index of consumer sentiment for June. Refinitiv estimates 84.0, which is slightly higher than May’s final reading of 82.9.
Wall Street posted gains on Thursday, despite much-anticipated reports, while bond yields fell mostly Consumer prices up 5% in May The biggest year-on-year growth since 2008 and higher than economists expected.
Consumer prices rise 5% annually, highest since August 2008
Investors also reacted positively to more data shown Continuous Improvement in the labor market.
Worryingly, if signs of inflation continue, central banks may proceed to withdraw stimulus from the economy to ease price pressures.
Unemployment claims fall to new pandemic levels
Investors will get to see next week how the Fed is reading the latest inflation barometer and what changes in monetary policy, if any, central banks may consider. The Fed’s policymaking committee is due to deliver its latest economic and interest rate policy updates next Wednesday.
In Asia, Tokyo’s Nikkei 225 index was unchanged, Hong Kong’s Hang Seng slipped 0.4% and China’s Shanghai Composite index slipped 0.6%.
|Me: DJI||dow jones average||34466.24||+19.10||+0.06%|
|me: comp||NASDAQ Composite Index||14020.333325||+108.58||+0.78%|
On Thursday, the S&P 500 rose 0.5% to 4,239.18, beating its previous all-time high set on May 7. The Dow Jones Industrial Average gained 0.1% to end at 34,466.24. The Nasdaq Composite rose 0.8% to 14,020.33, while shares of the smaller company lagged behind the broader market. The Russell 2000 Index fell 0.7% to 2,311.41.
A significant part of May’s rise in consumer prices was tied to used car sales, which is largely attributed to rental car companies expanding their fleets as people return to travel.
Will be tuning the market later this week for any developments at the summit group of seven in Britain. Top of leaders’ agenda is helping countries recover from the coronavirus pandemic, which has killed more than 3.7 million people and ravaged economies.
G-7 leaders are meeting for three days at a British seaside resort. This is the first such gathering before the pandemic.
In other trade, benchmark US crude oil rose 6 cents to $70.36 a barrel in electronic trading on the New York Mercantile Exchange. It rose 33 cents to $70.29 a barrel on Thursday.
International benchmark Brent crude rose 8 cents to $72.60 a barrel.