From the Wall Street Journal’s “Stock Futures Edge Up, Led by Tech” posted early Wednesday:
U.S. stock futures edged up Wednesday, pointing to tepid gains at the open led by technology stocks…
The S&P has been subdued for much of the last two weeks as investors weigh the reopening of the economy with rising inflation and supply chain concerns. The onset of summer months and the pandemic are also leading to thinner trading volumes, money managers said.
“We’ve seen very low volatility over the past week,” said John Roe, head of multiasset funds at Legal & General Investment Management. “As we get into the warmer weather, we have less market participants and a less volatile environment. This reduces liquidity.”
Worries about runaway inflation have abated in recent days, although investors remain on watch for fresh data on inflation in May that is due Thursday.
“The debate around how persistent inflation is and will be for the coming months is key. This might create some volatility,” said Luc Filip, head of private banking investments at SYZ Private Banking. Last month’s “higher than expected [consumer-price index] figures triggered quite a bit of market stress,” he added.
My take: Two greens in a row. Haven’t seen that since May.