Friday Market Minutes
- After yesterday’s inflation surprise and ECB rate conference, global equities have risen and the S & P 500 is poised to reach a new record peak as Treasury yields recede.
- Senators have agreed to a $ 1.2 trillion infrastructure bill blueprint, and the report suggests that new spending of just under $ 580 billion has spread over eight years.
- Benchmark 10-year bond yields fall to 1.43% during the Treasury’s largest weekly withdrawal over a year. The dollar index is strong at 90.183.
- According to CDC data, 141.6 million Americans have been fully vaccinated against the coronavirus, with approximately 305.7 million vaccinations as of Thursday.
- US equity futures suggest a mixed open, following faster-than-expected inflation data in May and a decline in weekly unemployment claims.
US stock futures rose on Friday, deepening the S & P 500 into record territory as investors looked at the fastest inflation surge in 13 years to focus on the world’s largest economic recovery outlook.
In pre-market trading last night and Friday, stocks rose despite a plunge in government bond yields over a year and a 10-year bond yield cut to a few-month low of 1.43%. Inflation data for May yesterday showed the highest rate of price increase since the early 1990s, even after removing food and energy.
A bipartisan group of senators also appear to have a lower-than-expected total infrastructure bill, with President Joe Biden reporting a $ 1.2 trillion deal later next week.
Is bond yields declining because investors are in favor of the Federal Reserve’s explanation that inflationary pressures will ease in the second half, or supply chain bottlenecks and labor market shortages aren’t hindering growth? It’s still a question of whether you’re worried about the debate.
But stocks seem to have overcome both concerns about the Fed’s meeting next week and the start of the second-quarter earnings season in early July. This is expected to increase S & P 500’s gross profit by 52.5%, taking into account equity weighting. In total, it’s about $ 412.5 billion.
Inflation-adjusted (at least at current levels), however, suggests that these sums could be the lowest since November 1980.
Futures contracts related to the Dow Jones Industrial Average suggest an opening Belgain of 60 points, adding 2.5 points to last night’s record high of 4,239.18 points.
Meanwhile, Nasdaq Composite futures, along with Apple, show potential for the fifth straight day of rise in technology-focused benchmarks. (AAPL)- Get the report And Tesla (TSLA)- Get the report Leading pre-market progress again,
Meme shares also found early support following a 27% drop in GameStop’s share price last night. (GME)- Get the reportSaid it recorded a loss in the first quarter, revealed plans for a capital increase, and said the Securities and Exchange Commission requested documents related to a private investigation.
Oil prices rose on Friday as Brent raised price targets from Goldman Sachs, which trades above $ 80 a barrel later this year, and improved demand outlooks from major economies such as Germany and Germany. And raised US crude oil prices to their highest levels in years. China.
The global benchmark Brent Crude contract for August delivery rose 16 cents from Thursday’s closing price in New York to trade at $ 72.68 a barrel, while WTI crude traded 10 cents higher at $ 70.39 a barrel. it was done.
In foreign markets, the STOXX 600 rose 0.4% in the session, with European equities in the past, as the UK economy’s pandemic recovery rate soared and the European Central Bank promised to maintain record low interest rates on Thursday. Recorded the best. The bond market will continue to support next year.
In Asia, MSCI’s benchmark across the region, excluding Japan, rose 0.31% in the session as rises in Hong Kong and South Korea offset China’s weaknesses. Meanwhile, the Nikkei 225 in Tokyo has finished its session on Friday.
Dow Futures Higher as Treasury Yields Retreat; Meme Stocks Steady Source link Dow Futures Higher as Treasury Yields Retreat; Meme Stocks Steady