U.S. stock futures wobbled Tuesday ahead of fresh data that will indicate how much Americans spent in stores, at restaurants and online last month.
Futures tied to the S&P 500 were relatively flat, indicating that the broad benchmark index will hover near its all time high. Nasdaq-100 futures edged up less than 0.1%, pointing to muted gains in technology stocks after the opening bell.
Investors expect that stocks will climb through the rest of the year due to easy monetary policies. Many people are also betting that higher inflation, due to the easing of economic restrictions and supply-chain bottlenecks, will be temporary. Signs that inflation will be elevated for a prolonged period or that the Federal Reserve may retrace its support could shake that confidence, money managers said.
“Investors seem a bit more convinced the Fed will do what it says it is going to do and stay put,” said Edward Smith, head of asset allocation research at U.K. investment firm Rathbone Investment Management. “That should mean we have relatively easy financial conditions and that should be good for equity markets.”
Data on Americans’ retail spending last month are due at 8:30 a.m. ET. Economists surveyed by The Wall Street Journal expect retail sales to have fallen as auto sales declined, fiscal support for consumers faded and Americans shifted their spending toward services and away from goods.
The market could see slightly weaker spending data as yet another sign that Americans aren’t worried about rising consumer prices, said
Sebastien Galy,
a macro strategist at Nordea Asset Management. “Households don’t need to purchase as quickly because they don’t fear inflation,” he added.
In bond markets, the yield on the benchmark 10-year Treasury note edged down to 1.485%, from 1.499% on Monday. Yields fall when prices rise.
Copper prices fell amid jitters about possible Chinese measures to tamp down rising commodity prices. The price of copper to be delivered in three months declined 4% on the London Metal Exchange to $9,557.50 a metric ton.
Overseas, the pan-continental Stoxx Europe 600 ticked up 0.2%. The index has closed at a record for the previous seven trading sessions.
Japan’s Nikkei 225 rose almost 1% by the close of trading, and South Korea’s Kospi Index gained 0.2%. China’s Shanghai Composite Index declined 0.9% and Hong Kong’s Hang Seng Index retreated 0.7%.
Investors expect stocks will climb through the rest of the year due to easy monetary policies.
Photo:
Courtney Crow/Associated Press
Write to Caitlin Ostroff at caitlin.ostroff@wsj.com
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