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Shares mixed amid continuing fears of inflation, S&P 500 moves close to record high



Stock futures opened near the flat line on Monday night after a meandering session during the regular trading day.

The contracts for the S&P 500 were noted. Previously, the index ended only with a mark below the flat line and was below half a percent below its all-time record. The Dow also finished lower as the Nasdaq pushed into positive territory.

Investors this week learned signals from officials about the way forward to monetary and fiscal policy and what they could offer for interest rates and corporate profits. Finance Minister Janet Yellen said over the weekend that higher interest rates “would actually be a plus for society and the Fed,”

; Bloomberg said in an interview.

However, traders are less convinced. The prospect of higher interest rates may weigh on stock valuations, and additional corporate tax reforms could further reduce the profits of large companies. Shares of Amazon (AMZN) fell on Monday after a report that finance ministers from the Group of Seven are seeking to include the e-commerce giant in the new global tax proposal. And investors continue to watch talks between President Joe Biden and members of Congress over his $ 4 trillion infrastructure proposal, which is likely to be funded in part by corporate tax increases.

However, some strategists suggest that investors’ concerns about key concerns about inflation and tax reform may be exaggerated, given that a solid background of economic growth may help overcome some interest rate levels of the exchange rate or policy.

“We think investors are becoming too pessimistic about the outlook for inflation and the growing tax environment,” John Adams, a strategist at BMO Global Asset Management, told Yahoo Finance. “Against the backdrop of a very supportive political environment, a strengthening economy and a very strong profit momentum do indeed portend earnings per share as we move towards the second half of the year.”

“We really prefer to position investors to a value with a slope there, with a slope to small caps. We believe that these areas of the shareholder spectrum are performing well in the growing inflation periods, “he added. “We think stocks are a pretty good hedge against potentially higher inflation, and we’re not so worried about the corporate tax environment given last week’s headlines or anything like that.”

On Tuesday, investors will receive new economic data in the form of Job Surveys and Labor Turnover Survey for April. Job creation is expected to hit a new record for the month, rising to 8.2 million from 8.123 million in March as employers seek to bring back more workers to keep up with demand during the recovery .

6:10 p.m. Monday: Stock futures diverged when the S&P 500 closed at a record high

Here is where the markets traded on Monday night:

  • S&P 500 futures (ES = F): 4,226,5, +1 point (+ 0.02%)

  • Dow futures (YM = F): 34,610.00, -6 points (-0.02%)

  • Nasdaq Futures (NQ = F): 13 820.5, +16.25 points (+ 0.12%)

FILE - In this photo file from March 23, 2021, the statue of the Fearless Girl stands in front of the New York Stock Exchange in the Financial District of New York.  Stocks opened significantly higher on Wall Street, starting strongly in June, when traders returned from the celebration of Remembrance Day in the United States (AP Photo / Mary Altaffer, File)

FILE – In this photo file from March 23, 2021, the statue of the Fearless Girl stands in front of the New York Stock Exchange in the Financial District of New York. Stocks opened significantly higher on Wall Street, starting strongly in June, when traders returned from the celebration of Remembrance Day in the United States (AP Photo / Mary Altaffer, File)

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

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