Wall Street markets start positive after first week of declines of the year

U.S. stock futures edged higher after their first weekly decline in five attempts, with traders remaining focused on inflation and how central banks will react to rising prices.

What’s going on
  • Futures contracts based on the Dow Jones Industrial Average
    YM00,
    + 0.31%

    up 94 points, or 0.3%, to 36107

  • Futures on S&P 500
    ES00,
    + 0.23%

    up 0.2%, or 10 points, to 4688

  • Nasdaq 100 futures contract
    NQ00,
    + 0.22%

    up 0.2%, or 39 points, to 16232

Major US benchmarks all fell for the first time in five weeks. It was a positive Friday, however, as the Dow Jones Industrial Average
DJIA,
+ 0.50%

up 179 points, or 0.5%, to 36100, the S&P 500
SPX,
+ 0.72%

up 34 points, or 0.72%, to 4683, and the Nasdaq Composite
COMP,
+ 1.00%

rose 157 points, or 1%, to 15861.

The S&P 500 is just 0.4 percent away from its all-time high.

What is driving the market?

The University of Michigan’s survey of consumer sentiment released Friday shows that inflation data is affecting consumer attitudes, though it’s unclear if that will translate into weaker spending. The Chicago Fed’s pre-retail trade summary forecast retail sales excluding autos to grow 2.6%, much stronger than the 1% gain in a poll of economists. economy. The retail sales report is due on Tuesday.

“Strong demand from households despite depressed attitudes suggests that heavy financial support and resilient financial conditions are outweighing the limited effect of weak sentiment. . If fiscal and monetary support is strong enough to counter depressed sentiment, they could be strong enough to push inflation higher,” said Michael Moran, chief economist at Daiwa Capital Markets America.

The inflation backdrop makes the next choice for the Federal Reserve seat all the more politically important for President Joe Biden. The Wall Street Journal reported that he could choose between giving up Fed Chairman Jerome Powell or choosing the Fed. Governor Lael Brainard, earlier this week. The report said the Brainard meeting “went better than expected”.

Biden will sign the infrastructure bill into law during a signing ceremony Monday afternoon. He will hold a virtual meeting with Chinese President Xi Jinping in the evening.

European Central Bank President Christine Lagarde told the European Parliament that the central bank expects inflation to moderate next year, although prices will take longer to fall than forecast. original ant. European inflation data will be released this week.

https://www.marketwatch.com/story/wall-street-eyes-positive-start-after-first-weekly-fall-in-five-11636974051?rss=1&siteid=rss | Wall Street markets start positive after first week of declines of the year

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