AppsEntertainmentStock futures are little changed as S&P 500 remains...

Stock futures are little changed as S&P 500 remains range-bound near record

-

- Advertisment -spot_img


Traders work on the floor of the New York Stock Exchange.

NYSE

Stock futures were flat on Wednesday as Wall Street appeared range-bound near its record levels.

Futures on the Dow Jones Industrial Average were lower by 29 points. S&P 500 futures were essentially flat. Nasdaq 100 futures gained 0.1%.

Trading was quiet in the premarket though reopening plays like Carnival Corp. and American Airlines were slightly higher in early trading.

Meme stock mania was set to continue Wednesday with day traders now focusing their attention on Clover Health. The stock was up another 18% in premarket trading following an 85% rally on Tuesday amid explosive trading volumes. Wendy’s, another name popular among Reddit traders, gained 25% Tuesday and was higher again in premarket trading Wednesday.

The S&P 500 and the blue-chip Dow both closed near the flatline on Tuesday. The broad equity benchmark is now just 0.3% below its record high of 4,238.04 reached on May 7. Investors await the next reading on inflation to gauge if higher price pressures are just temporary as the economy continues to rebound from the pandemic-induced recession.

“US stocks have largely been stuck in a range since mid-April and don’t seem likely to be breaking out anytime soon,” Edward Moya, senior market analyst at Oanda, said in a note. “Investors want to see how hot pricing pressures get and how much downside in equities will occur once the Fed’s taper tantrum begins.”

The consumer price index for May is set to be released Thursday. Economists are expecting the CPI to rise 4.7% from a year earlier, according to Dow Jones. In April, the CPI increased 4.2% on an annual basis, the fastest rise since 2008.

Many on Wall Street believe the latest meme stock episode should stay contained to a handful of names, unlike the GameStop trading frenzy in January that had an impact on the broader stock market.

“Given the low risk of a broad contagion, we view the fallout of the recent short squeeze to be
limited,” Maneesh Deshpande, global head of equity derivatives strategy at Barclays, said in a note. “The current short squeeze is more localized probably because the number of stocks with high short interest has come down dramatically.”

On the data front, job openings in April soared to a new record high, with 9.3 million vacancies coming online amid the economic recovery.


LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Vivendi awaits key shareholder vote on Universal Music Group spin-off

Taylor Swift performs onstage during the Taylor Swift reputation Stadium Tour at Mercedes-Benz Stadium on August 11, 2018...

Judge dismisses most claims against Trump administration in clearing of Lafayette Square

WASHINGTON — A federal judge has dismissed a majority of the claims filed by activists and civil liberties...

Dow rallies 580 points for best day since March as market roars back from post-Fed sell-off

U.S. stocks climbed on Monday as the market recouped some of the steep losses caused by the Federal...

Wastewater system helps Missouri track rise of delta variant across the state

COLUMBIA, Mo. — In Missouri, experts say a more contagious strain of Covid-19 is spreading rapidly, particularly in...
- Advertisement -spot_imgspot_img

Market volatility is back as Covid and Fed uncertainty hit sentiment

Traders look on as a screen shows Federal Reserve Chairman Jerome Powell's news conference after the U.S. Federal...

At least 5 people injured, dozen homes damaged in Illinois tornado

At least five people were injured, including one critically, and a dozen homes were damaged in a possible...

Must read

- Advertisement -spot_imgspot_img

You might also likeRELATED
Recommended to you