Stock futures flat after the S&P 500 hit new highs despite rising inflation
Trader on the New York Stock Exchange, June 2, 2021.
US stock futures were flat Thursday night after the S&P 500 hit a new high during regular trading despite unexpected inflation data.
The futures linked to the Dow Jones Industrial Average and the S&P 500 were nearly flat at the start of the overnight session. Nasdaq futures rose 0.1%.
During regular trading hours, the Dow Jones Industrial Average rose 19 points, or 0.06%, to 34,466.24. The S&P 500 ended the day up 0.47% at 4,239.18. The Nasdaq Composite ended the day up 0.78% at 14,020.33.
The Labor Department released consumer price index data Thursday showing that inflation is rising the fastest since 2008 as the economy recovers from the pandemic-induced recession.
The CPI represents a basket of food, energy, groceries and prices across a range of goods and was up 5% year over year in May.
The markets shrugged at the news, however.
“A significant portion of this inflation could prove temporary, as nearly half of the above-average rise in inflation is due to the base effects of last year’s economic slowdown and even supply bottlenecks should be temporary as companies increase productivity and catch up.”, Jason Pride , CIO for personal wealth at Glenmede.
Regardless, initial jobless claims for the week ending June 5 stood at 376,000 – the lowest number in the Covid pandemic – according to a separate Labor Department report released Thursday.