The minute of the Friday market

  • Global stocks are climbing on yesterday’s inflationary surprise and ECB rate meeting, with the S&P 500 poised for a new high as Treasury yields retreat.
  • Leading Senate lawmakers agree on a plan for a $ 1.2 trillion infrastructure bill, reports suggest, with just under $ 580 billion in new spending spread over eight years.
  • 10-year benchmark bond yields fall to 1.43% amid the biggest weekly T-bill decline in more than a year; the dollar index holds at 90.183.
  • CDC data shows that 141.6 million Americans have now been fully immunized against the coronavirus, with approximately 305.7 million doses administered as of Thursday.
  • US equity futures suggest a mixed opening after faster-than-expected inflation data in May and a further decline in weekly jobless claims.

U.S. equity futures rose on Friday, taking the S&P 500 deeper into record territory, as investors examined the fastest rise in inflation in thirteen years to focus on the prospects for a recovery in the deepest. great economy of the world.

Stocks got a boost last night, and again in pre-market trading on Friday, with the biggest pullback in Treasury bond yields in more than a year, which pushed bond yields to 10. years to a multi-month low of 1.43% in overnight trading despite yesterday’s May inflation data which showed the highest rate of price increase – even after removing food and energy – since the early 1990s.

A smaller-than-expected infrastructure bill total also appears to be emerging from a bipartisan group of senior Senate lawmakers, with reports of a $ 1.2 trillion deal to be submitted to President Joe Biden later on. next week.

That bond yields retreat because investors buy into the Federal Reserve’s narrative that inflation pressures will ease in the second half of the year, or fear that supply chain bottlenecks and shortages on the labor market slow growth, it is still a matter of debate.

Shares, however, appear to have gotten past both concerns as the Fed meeting next week approaches and the second-quarter earnings season begins in early July, which is expected to post a 52.5% increase in profits. collectives of the S&P 500, taking the total equity weight to about $ 412.5 billion.

Adjusted for inflation – at least at current levels – however, these totals could be the lowest since November 1980.

Futures linked to the Dow Jones Industrial Average suggest an opening bell gain of 110 points, with the S&P 500 valued for an addition of 8 points to last night’s record close of 4,239.18 points.

Futures on the Nasdaq Composite, meanwhile, point to the possibility of a fifth consecutive day of gains for the tech-focused benchmark, with Apple (AAPL) – Get a report and Tesla (TSLA) – Get a report once again leading the pre-market lead,

Meme’s shares also found early support after GameStop’s shares fell 27% last night. (GME) – Get a report, which recorded a loss in the first quarter, unveiled plans to raise capital and said the Securities and Exchange Commission had requested documents related to an undisclosed investigation.

GameStop rose 4.8% on Friday, with AMC Entertainment (AMC) – Get a report 3% gain and BlackBerry (BB) – Get a report up 1.6%.

Oil prices extended their gains on Friday, taking U.S. crude prices to new multi-year highs, following an increase in Goldman Sachs’ price target, which sees Brent trading north of 80 $ a barrel later this year, and improve the demand outlook for major economies such as Germany and China.

Brent crude contracts for August delivery, the global benchmark, added 16 cents from Thursday’s close in New York to trade at $ 72.68 a barrel while WTI crude rose 10 cents to $ 70.39 per barrel.

In overseas markets, European stocks hit a new high with the Stoxx 600 up 0.4% on the session, in part thanks to a torrid pandemic recovery growth rate for the UK economy and to Thursday’s pledge by the European Central Bank to keep rates low and bond market support for much of next year.

Overnight in Asia, the regional benchmark MSCI ex-Japan rose 0.31% during the session, with gains in Hong Kong and South Korea offsetting weakness in China , while the Nikkei 225 in Tokyo ended Friday’s session at roughly 28,948.73 points.

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