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Stock futures flat after Dow, S&P 500 hit fresh records

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A street sign on Wall Street will be displayed in front of the New York Stock Exchange (NYSE) in New York, United States on Thursday, February 11, 2021.

Bloomberg | Getty Images

Futures contracts, pegged to major U.S. stock indices, remained stable during the overnight session on Sunday night, suggesting that Wall Street could see subdued trading on Monday after breaking new records last week.

Dow futures lost 20 points while contracts were tied to S&P 500 and Nasdaq 100 were each down about 0.15%.

The lukewarm move in the futures market on Sunday followed another record close for the Dow Jones Industrial Average on Friday when it gained nearly 300 points and ended at 33,800.6. The S&P 500 gained 0.8% and reached its third record in a row.

Stocks linked to the recovering economy drove many gains over the past week as vaccination efforts accelerated in the US. Both the Dow and S&P 500 were up at least 2% last week. The Nasdaq rose 3.1% over the same period as some retailers built big tech names, with Apple gaining more than 8% and Amazon and Alphabet each gaining more than 6%.

The result of the first quarter The reporting season starts this weekwith expectations for generally positive news and an uptrend for US stocks thanks to a recovering economy. Many of the largest banks in the country, including Goldman Sachs and JPMorgan Chase will report results this week for the three months ended March 31st.

The week ahead is also filled with Fed speeches and key economic data, including a highly anticipated inflation reading on Tuesday, when the consumer price index is released.

Fed Chairman Jerome Powell starts a week with several Fed appearances with a “60 minute” interview on Sunday evening. He will also speak at an Economic Club of Washington event on Wednesday.

“A positive fiscal shock, a strong real estate tailwind, a large stock of savings and the Fed pushing inflation above 2% mark a fundamentally different economic backdrop,” Evercore ISI equity strategist Dennis DeBusschere wrote in an email. “The US data is expected to be strong this week and US vaccinations to increase. Real rates are still too negative and rising, which supports the risk factor’s outperformance.”

Investors will also be keeping an eye on President Joe Biden’s efforts to advance an important infrastructure proposal known as the American Jobs Plan. Biden, who along with other Democrats promised a major infrastructure overhaul in the 2020 election, will do so Meeting with a non-partisan group of lawmakers on Monday to convince Capitol Hill to support the $ 2 trillion package.

Congress will return to Washington this week and hold its proposal for the first time since Biden’s proposal, which will allocate hundreds of billions of dollars to roads, bridges, airports, broadband, electric vehicles, housing and vocational training.

The president’s plan would also raise the corporate tax rate to 28% and put in place other overseas tax avoidance strategies.

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Robert Dunfee