Stock futures mixed after S&P 500, Dow sets records

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Equity futures were little changed on Wednesday night after another record-breaking session, as investors considered a report indicating contained inflationary pressures and considering the likelihood of increased public spending on infrastructure.

S&P 500 contracts followed the flat line. The blue chip index and the Dow Jones both hit all-time highs intraday and closing for a second straight session on Wednesday.

One of the latest sources of fuel for stocks came after the Department of Labor’s monthly consumer price index showed prices rose as expected in July, gaining 0.5% mo. decelerate from the gain in June. Prices for used cars, trucks and airline tickets have slowed significantly, underlining moderating inflationary pressures as the economic recovery improves and a first wave of pent-up consumer demand has kicked in.

“We are still at very high inflation levels in this country and the debate still rages on whether we will see a downward path to significantly lower inflation levels, or will it remain at Sticky levels much higher than what was anticipated by the Fed and market participants, ”Mark Luschini, chief investment strategist at Janney Montgomery Scott told Yahoo Finance.“ However, in the meantime, this also suggests that we we may have seen the peak of this inflation cycle… realization. “

Meanwhile, the earlier passage by the US Senate of a $ 1 trillion infrastructure bill has further boosted cyclical stocks like industrials and materials, as these companies have everything to do with it. gain directly from increased government spending on physical structures. The chamber also voted to approve part of a $ 3.5 trillion budget resolution that would address a broader set of health care, child care, education and climate change initiatives in the country. heart of the objectives of the Biden administration.

With US equity markets at record highs, many investors are waiting for the next catalysts for risky assets, especially given recent strength in economic data and second quarter results among large corporations. Many experts have suggested that a slowdown in economic growth and profits across a number of major data points is likely to continue, given that peaks appear to have been recorded for these areas.

“I would probably sum up [the backdrop now]in a nutshell, which is ‘deceleration’, “Omar Aguilar, director of investments for passive and multi-asset equity strategies at Charles Schwab Investment Management, told Yahoo Finance.” If you think about all the data we have received over the past few weeks, everything indicates a deceleration of all kinds. The economy is slowing, profit growth slows. The inflation rate that we just saw this morning is also slowing down. The peak of most of these indicators suggests that in the future we will continue to see a deceleration of the majority of these things. ”

“This is obviously a mixed signal for the market,” he added. “The market appears to have taken the right track, mainly believing this to confirm the view of Fed officials that inflation will be transient, and therefore the possibility that these rates will stay lower and the reduction program will begin longer. late this year or early next year … [but]we should expect more volatility as more mixed signals will continue to emerge. “

6:13 p.m. ET Wednesday: Stock futures are on the rise

Here’s where the markets were trading on Wednesday night:

  • S&P 500 Futures Contracts (ES = F): -0.25 point (-0.01%) to 4,440.25

  • Dow Futures (YM = F): +9 points (+ 0.03%) at 35,381.00

  • Nasdaq Futures Contracts (NQ = F): -15.5 points (-0.1%) to 15,004.00

NEW YORK, NEW YORK – AUG 10: People walk past the Fearless Girl statue outside the New York Stock Exchange (NYSE) on August 10, 2021 in New York City. Markets were higher in morning trading as investors look to a rare bipartisan effort in the Senate to pass a massive infrastructure bill that, if passed, will inject billions into the U.S. economy. (Photo by Spencer Platt / Getty Images)

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

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