Inventory futures began the month a bit of decrease after main indices rose in Might
Traders on the floor of the New York Stock Exchange.
Stock futures are slightly lower in overnight trading after major indices posted gains in May.
Futures on the Dow Jones Industrial Average fell 35 points, or 0.10%. S&P 500 futures lost 0.09% and Nasdaq 100 futures were 0.03% lower.
The moves in overnight trading come after the blue chip Dow and S&P 500 rose 1.93% and 0.55% respectively in May, marking their fourth consecutive positive month. The S&P 500 closed just 0.8% from its record high on Friday.
Russell 2000 small cap rose 0.11% in May, its eighth consecutive positive month – the longest monthly streak since 1995.
The Nasdaq was up 2.06% last week, its best weekly performance since April. However, the tech-heavy composite lost 1.53% in May, breaking a 6-month winning streak.
A key inflation indicator – the core consumer spending index – rose 3.1% yoy in April, faster than the forecast increase of 2.9%. Government bond yields fell on Friday despite the unexpectedly high inflation data.
“Overall, given the market reaction to [Friday]The PCE release may have exaggerated – or perhaps already priced in – investor concerns about inflation, “Goldman Sachs chief executive officer Chris Hussey said in a note.
“There may be consensus that the inflation we see today is a ‘good’ inflation – the kind of price increase that comes with accelerated growth, not a monetary policy mistake,” Hussey said.
Investors await the June 15-16 meeting of the Federal Reserve. What matters to markets is whether the Fed is starting to believe that inflation is higher than expected or that the economy is strengthening enough to move forward without so much financial support.
The May labor market report, due to be released on Friday, will provide an important overview of the economy. According to the Dow Jones, economists expect around 674,000 new jobs to be created in May after significantly fewer than expected 266,000 jobs were added in April.
Zoom Video Communications and Hewlett Packard Enterprise will release their quarterly results on Tuesday after the bell.
– CNBC’s Patti Domm contributed to the coverage.