A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, United States on June 30, 2021.
Brendan McDermid | Reuters
Stock futures were flat in overnight trading on Monday as Wall Street opened the vacation-shortened week with the S&P 500 at a record high.
Futures on the Dow Jones Industrial Average only rose 30 points. S&P 500 futures were little changed and Nasdaq 100 futures were down less than 0.1%. US markets remained closed for July 4th, Independence Day.
West Texas Intermediate crude oil surged to over $ 76 a barrel as an important meeting between oil producing group OPEC and its partners on crude oil exploration policy was canceled. The postponement came when the United Arab Emirates rejected a proposal to extend oil production increases for a second day.
The S&P 500 has had a seven-day winning streak, the longest since August, amid a string of solid economic reports, including a better-than-expected job report on Friday. The tech-heavy Nasdaq Composite also hit a record high in the previous session.
The economy created 850,000 jobs last month, according to the Bureau of Labor Statistics. Economists polled by Dow Jones expected an increase of 706,000.
Still, after a strong first half performance amid a historic economic reopening, many on Wall Street expect smaller and more troubled gains for the remainder of the year. The S&P 500 is up nearly 16% since the start of the year.
“The US economy is booming, but we know it by now and the asset markets reflect it. Which is no longer so clear what price this growth will come at, “said Michael Wilson, chief strategist for US equities at Morgan Stanley, in a note.
“Higher costs mean lower profits, another reason the overall stock market has narrowed … Stock markets will likely pause this summer as things heat up,” said Wilson.
Wall Street’s consensus target for the S&P 500 is 4,276, a loss of nearly 2% from Friday’s closing price of 4,352.34, according to the CNBC Market Strategist Survey, which rounds up the predictions of 16 top strategists.
Investors await the release of the June Federal Open Markets Committee’s minutes of the June meeting for clues to the central bank’s behind-the-scenes discussions on the abolition of its quantitative easing program.