Traders work on the floor of the New York Stock Exchange (NYSE) on December 8, 2021 in New York City.
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Futures rose early Monday after the S&P 500 posted its best week since February with a fresh record close, recovering from a massive sell-off on fears of an omicron coronavirus variant.
Dow Jones Industrial Average futures trade 90 points higher. S&P 500 futures were up 0.24% and Nasdaq 100 futures were up 0.24%.
The action early Monday followed a strong week on Wall Street as investors gave up read hot inflation. The blue-chip Dow rose 4% last week, breaking a four-week losing streak with its best weekly performance since March. The S&P 500 and Nasdaq Composite rose 3.8% and 3.6%, respectively. Last week, both posted their best weekly performance since early February.
Investors recognized a jump in headline inflation data, stood at 6.8% in November year-over-year for the strongest gain since 1982. The figure was slightly higher than the Dow Jones estimate of 6.7%.
“The reality is that inflation is likely to continue to stay higher for a while and inflation risks remain fixed. It’s better to slowly bring inflation down to a more comfortable level,” said Rick Rieder, chief investment officer. on BlackRock’s global fixed income, said in a note.
The key inflation reading comes ahead of the Federal Reserve’s two-day policy meeting this week, where policymakers are expected to discuss accelerating the end of the program. their bond purchases.
Fed Chairman Jerome Powell, as well as a parade of Fed speakers, all of which recently suggested that the central bank could end its $120 billion monthly bond-buying program earlier than its current deadline of June 2022.
“We think strong economic growth, a recovering labor market, and rising inflation have clearly moved the Fed toward accelerating focus on policy shifts and, in particular, on easing,” Rieder said. quantity”.
Stocks rallied again last week as investors bet that initial worries about the coronavirus were overblown. Many people also receive consolation in news from Pfizer and BioNTech that one study found that three doses of their vaccine provided a high degree of protection against the variant.
Since Sunday, The United States has come close 800,000 coronavirus-related deaths. The new variant has prompted some government officials to reinstate health restrictions to slow the spread.
