A trader works on the floor of the New York Stock Exchange (NYSE) in New York, USA on Monday, August 23, 2021.
Michael Nagel | Bloomberg | Getty Images
US stock futures remained stable in overnight trading on Sunday as investors prepared for the final days of trading in August.
Dow futures only rose 11 points. S&P 500 futures were little changed and Nasdaq 100 futures traded around the flatline.
Stocks could stay in a range until the August job report released on Friday. Economists polled by Dow Jones estimate that 750,000 jobs were created in August and the unemployment rate has fallen to 5.2%.
Monday and Tuesday mark the last two trading days in August. So far, the S&P 500 is up 2.6% in August. The Dow Jones Industrial Average and Nasdaq Composite rose 1.5% and 3.1% respectively that month.
The S&P 500 and Nasdaq Composite closed at all-time highs on Friday as investors breathed a sigh of relief after Fed chairman Jerome Powell signaled that bonds could expire this year, but the central bank is in no rush to lock rates raise.
Powell said inflation is solidly around the central bank’s 2% target rate, one of the targets of the Fed’s dual mandate; However, the Fed chairman also explained why he continues to believe that the current rise in inflation is temporary and will eventually decline to target levels.
Based on statements from other Fed officials, the announcement could be cut back at the Fed’s September 21-22 meeting. Powell said the central bank had “a lot of ground to overcome” in order to achieve its other goal of maximum employment.
Friday’s gains contributed to a strong week for major averages. The Dow closed 0.9% while the S&P 500 added 1.5% and the Nasdaq Composite rose 2.8% last week.
With the Fed’s meeting in Jackson Hole looking back, investors are now focusing on the performance of stocks for the final months of the year. The S&P 500 is up more than 20% in 2021, but the market is also absorbing top policy momentum, top profit accelerations, and top reopening momentum.
Oil futures rose slightly as the commodity reacted only minimally to Hurricane Ida. WTI crude oil futures rose 0.8%.
Cloudera and Zoom Video will report earnings after the bell on Monday.