Traders on the floor of the New York Stock Exchange
S&P 500 futures rose slightly Tuesday as the benchmark makes another attempt at a new record after starting the week lower.
Futures on the S&P 500 gained 0.1% and Nasdaq-100 futures rose 0.3%. Dow Jones Industrial Average futures shed about 20 points. On Monday, the S&P 500 dipped 0.08%. However, the benchmark is just 0.27% away from its intraday record hit earlier in May.
Tesla, which is down 10% in the last 1 month, rebounded by 3% in premarket trading to pace Nasdaq stocks. Delta Air Lines gained 1.5% after an upgrade from Jefferies on optimism about international and business travel.
The Dow fell 126 points, or 0.36%, in the regular session Monday for its worst daily performance since May 19.
Meme stocks continued their rally Monday. Shares of AMC Entertainment jumped 14.8%, and BlackBerry and GameStop shares also popped double-digits. The U.S. Securities and Exchange Commission said Monday it’s watching ongoing volatility in the market and vowed to protect retail investors.
Investors are awaiting new inflation signals later this week following Friday’s jobs report. While the U.S. added fewer jobs than expected in May, the unemployment rate dropped to 5.8% from 6.1% and markets reacted positively to the readout.
“The reflation trade is taking a bit of a backseat even as Friday’s ‘Goldilocks’ payrolls report served to quell some concerns that the economy might be doing a bit too well,” Goldman Sachs’ Chris Hussey said in a note Monday. “Today’s market action shows that these concerns might be here to stay.”
May’s consumer price index 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.
All eyes are on the next Federal Open Market Committee meeting scheduled for June 15-16 as investors look for what Fed officials will say about inflation and monetary policy. Recent comments by officials suggest the Fed is beginning to prepare markets for tapering its asset purchases.
Since hitting a record on May 7, the S&P 500 has struggled amid inflation concerns, trading mostly sideways.