New York Stock Exchange Traders, June 2, 2021
US stock futures plummeted early Friday morning after the S&P 500 reached a new high during regular trading, despite higher-than-expected inflation data.
The futures tied to the Dow Jones Industrial Average scored 21 points, while the futures of the S&P 500 and Nasdaq-1
During the regular session, the Dow Jones Industrial Average rose 19 points or 0.06% to 34,466.24. The S&P 500 ended the day with 0.47% to 4,239.18. Nasdaq Composite ended the day with 0.78% to 14,020.33.
The labor ministry reported data on the consumer price index on Thursday, showing that inflation has been growing at its fastest pace since 2008, when the economy recovered from the pandemic-related recession.
The CPI is a basket of food, energy, groceries and prices for a wide range of goods and jumped 5% in May from a year earlier.
However, the markets shrugged off the news.
“A significant amount of this inflation may be transient, as nearly half of the above-average jump in inflation comes from the underlying effects of last year’s weakened economy, and even supply shortages must be transient as companies increase productivity and start to meet the lingering demand, “Jason Pride, CIO of Private Wealth in Glenmed.
Separately, initial unemployment claims for the week ending June 5 reached 376,000 – the lowest level of the Covid pandemic – according to a separate Labor Department report released Thursday.