US stock futures were slightly higher on Friday morning after the S&P 500 hit a new high on its last session despite unexpectedly hot inflation data.
Futures pegged to the Dow Jones Industrial Average gained 74 points while S&P 500 futures added 0.1%. Nasdaq 100 futures were up 0.1%.
There weren’t many great movers and shakers in pre-trading. Some of the meme stocks rebounded after a tough day on Thursday. AMC shares rose 3% and GameStop rose 7% in the premarket. These two suffered double-digit percentage losses on Thursday as the momentum slowed down on Reddit favorites.
On Thursday, the Dow Jones Industrial Average rose 19 points, or 0.06%, to 34,466.24. The S&P 500 ended the day up 0.47% at 4,239.18, hit a new intraday high, and hit a record close. The benchmark had traded sideways for about a month since its last record on May 7th. The Nasdaq Composite ended the day up 0.78% at 14,020.33.
The gains even came when a report showed inflation rose the fastest since 2008 as the economy recovered from the pandemic-induced recession. The consumer price index represents a basket that includes food, energy, groceries and prices for a range of goods, and rose 5% year over year in May.
The markets shrugged at the news, however. Perhaps the bond market’s reaction to the hot inflation reports has boosted stocks. The 10-year government bond yield fell to 1.44% on Friday after trading above 1.77% earlier in the year.
“A significant portion of this inflation could prove temporary, as nearly half of the above-average rise in inflation is due to the base effects of last year’s economic slowdown and even supply bottlenecks should be temporary as companies increase productivity and catch up.”, Jason Pride , CIO for personal wealth at Glenmede.
Regardless of this, the initial jobless claims for the week ending on the 5th
For the week, the main benchmarks are mixed. The Dow is down 0.8%, but the S&P 500 is up 0.2% and the Nasdaq Composite is up 1.5%.