The S&P 500 futures remained unchanged on Monday ahead of the key inflation data to be released later this week. The Dow Jones futures edged higher by 0.13% while Nasdaq futures declined by 0.07% with a decline in large technology stocks.
US Economic Data
Some US futures edged lower on Monday signaling lower markets’ opening after closing near records high on Friday. According to data released on Friday, the United States recorded a slowdown in the addition of jobs in May.
Unemployment rate fell more than expected. Unemployment rate fell to 5.8% in May from the previous 6.1% in April. Payrolls grew by 559,000 last month from the 278,000 figures in April. The labor recovery recorded a slowdown as 785,000 jobs were recorded in March.
Despite the decline in the unemployment rate, employment was still down by about 7.6 million jobs compared with the pre-pandemic levels. Weekly jobless claims were below 400,000.
US employers boosted hiring in May. The easing of restrictions on businesses by the state and local governments also boosted hiring last month. Job gains in May were led by leisure and hospitality which added 292,000 jobs.
The Fed is closely monitoring the rate of hiring to gauge the overall economy as it begins to assess when to taper its policies.
The decline in commodity prices such as oil saw the S&P 500 futures dive. Oil in New York slipped after rising to $70 per barrel.
Large technology shares declined after turning down a deal by the world’s richest nations on a global minimum corporate tax. The Group of Seven (G7), agreed to back a minimum global corporate tax rate of at least 15%.
The S&P 500 index will react to the upcoming key inflation data. Investors are concerned about the Federal Reserve’s decision to tighten it monetary policy earlier than expected.
S&P 500 Contributors
Shares of Apple Inc and Amazon.co Inc rose in Monday’s premarket trading. AMC Entertainment added 3.72% in the premarket trade after recording a 200% rise in the past two weeks. GameStop and Blackberry also inched higher in the trade each recording an increase of about 1.87% and 3.90% respectively.
Facebook Inc and Google-parent Alphabet dropped in Monday’s pre-market trading.