U.S. stock futures rose Monday after setting records last week, following the release of data showing the core measure of consumer prices receding.
What’s happening
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Futures on the Dow Jones Industrial Average
YM00,
+0.19%
rose 112 points, or 0.3%, to 35987
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Futures on the S&P 500
ES00,
+0.25%
added 0.4%, or 17 points, to 4720
-
Futures on the Nasdaq 100
NQ00,
+0.32%
rose 0.4%, or 64 points, to 16395
Last week, each of the major indexes rose 4%, with the S&P 500
SPX,
+0.95%
closing at its 67th record high of 2021 on Friday. The benchmark U.S. index has gained 25% this year.
What’s driving markets
While the headline from Friday’s inflation report was that the main index reached a 39-year high on a year-over-year basis, there was relief that monthly momentum softened. The markets appear ready for the Federal Reserve on Wednesday to announce a faster pace of tapering this week in response to rising prices.
“The expectation for this week’s FOMC meeting is the announcement of a faster QE tapering, and perhaps a hint that the first rate hike in the U.S. could come earlier than previously thought,” said Ipek Ozkardeskaya, senior analyst at Swissquote.
“We may see some categories of stocks fall from grace, such as meme stocks which were greatly benefiting from cheap liquidity, and which may not fly as high with their own wings in the coming months,” she added.
Besides the week’s flurry of central bank decisions, which also will include the Bank of England, the European Central Bank and the Bank of Japan, markets also will be focused on coronavirus headlines. On Sunday night, U.K. Prime Minister Boris Johnson warned of a “tidal wave” of omicron infections and said England would quicken the pace of booster vaccinations.
How other assets are trading
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The Turkish lira
USDTRY,
+3.35%
crashed against the dollar, as S&P warned it may downgrade Turkey’s debt rating. The Central Bank of Turkey responded by intervening in markets “due to unhealthy price formations in exchange rates.”
