Traders work on the floor of the New York Stock Exchange.
Stock futures are equal as the S&P 500 tries to set a record this week amid optimism about the continued opening of the economy this summer.
S&P 500 futures added less than 0.1%. Dow Jones Industrial futures gained 1
The S&P 500 reported just 0.2% of its record in the day earlier in May. The benchmark rose 0.6% last week to increase its profits in 2021 by more than 12%. The Dow and Nasdaq also reported a profit last week.
The job report on Friday showed that the unemployment rate fell to 5.8% from 6.1% and that 559,000 jobs were added in May. The report was considered strong enough to keep investors’ confidence in the economy, but light enough to prevent the Federal Reserve from rushing to change its policy for easy money.
Investors are focused on inflation data for next week, with the consumer price index (CPI) in May to be published on Thursday. In April, the CPI increased by 4.2% compared to the previous year, which is the fastest increase since 2008. If prices continue to rise, this could force the Federal Reserve to back down from its easy policies.
Over the weekend, the G-7 reached an agreement on global tax reform, calling on the world’s largest corporations to pay at least 15% tax on their profits. This is lower than the Biden administration’s initial proposal for a tax rate of at least 21%, which has not won much enthusiasm in other countries. Major companies, including Facebook and Google, have responded positively to the agreement.
Stocks of memes will be in the spotlight again this week. Most of these speculative stocks, including GameStop, AMC and BlackBerry, ended the week in the red, despite huge gains after a volatile trading week.