S&P 500 is flat to start the week, sitting inches from a record high

Tiger Newspress2021-06-07

(June 7) The S&P 500 was little changed on Monday as the benchmark attempts to make a run at a record high this week amid optimism about the economy's ongoing reopening this summer.

The broad equity benchmark traded on the flatline, sitting just 0.2% from its intraday record high earlier in May. The Dow Jones Industrial Average rose 40 points. The Nasdaq Composite was also flat.

The benchmark advanced 0.6% last week to bring its 2021 gains to more than 12%. The Dow and Nasdaq also posted gains last week.

Tech stocks were weak in morning trading, weighing on sentiment a bit. Shares of Zoom and Tesla each fell about 1%.

Visa shares were higher, gaining 1% followingan upgrade by Piper Sandler.

"Stocks have climbed back toward record-high territory as the pace of the economic recovery appears to be well-balanced," said Craig Johnson, chief market technician at Piper Sandler. "Signs of rising inflation have mostly been offset by rising subscriptions to the Fed's 'transitory' outlook."

Friday's jobs reportshowedthe unemployment rate dropping to 5.8% from 6.1% and that 559,000 jobs were added in May. The report was seen as strong enough to keep investors' confidence in the economy, but light enough to keep the Federal Reserve from rushing to change its easy money policies.

Investors arefocused on inflationdata in the week ahead, with May's Consumer Price Index (CPI) scheduled to be released Thursday. In April the CPI rose 4.2% from the previous year, the fastest increase since 2008. If prices continue to rise it could cause the Federal Reserve to step back from its easy policies.

Over the weekend the G-7 nationsreached an agreement on global tax reform, calling for the world's largest corporations to pay at least a 15% tax on their earnings. That's lower than the Biden administration's initial suggestion of a minimum 21% tax rate, which didn't garner much enthusiasm in other countries. Major companies including Facebook and Google have responded favorably to the agreement.

Meme stocks will be back in the spotlight again this week. Most of these speculative stocks, including GameStop, AMC and BlackBerry, ended the week in the reddespite massive gainsafter a volatile trading week.

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精彩评论

  • mantis
    2021-06-07
    mantis
    Oh no
  • 旭日东升69
    2021-06-07
    旭日东升69
    [暗中观察] [看涨] 
  • mantis
    2021-06-07
    mantis
    Good
  • 193a1f3d
    2021-06-07
    193a1f3d
    Ok
  • Maydelyn
    2021-06-07
    Maydelyn
    In fact I like this small correction.. so that it can go further.. ☺️
  • Issacwilson
    2021-06-07
    Issacwilson
    [强] 
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