By Ambar Warrick
(Reuters) – US stock index futures rose Friday after inflation data eased concerns about a possible long-term spike in rising prices, with investors now focusing on next week’s Federal Reserve meeting for further guidance on monetary policy receive.
The S&P 500 rose to a record high on Thursday as investors scaled back expectations for an early Fed tightening, with May consumer price data suggesting that any recent spike in inflation is likely to be temporary.
Much of the May price spike came from items like commodities and airfare, and it is expected to be temporary.
With the latest data also pointing to weakness in the labor market, the Fed is widely expected to maintain its accommodative policy, which has a positive impact on stocks and other risky assets.
The S&P 500 E-minis rose 7.25 points, or 0.17, at 6:36 a.m. ET. Dow e-minis rose 77 points, or 0.22%, while the Nasdaq 100 e-minis rose 30.25 points, or 0.22%.
The S&P 500 and Nasdaq were poised for slight weekly gains as they moved in a tight range due to the lack of critical catalysts and a summer trading slack.
But the weakness in major industrials caused the Dow Jones to post a weekly loss amid doubts whether President Joe Biden’s $ 2.3 trillion infrastructure spending plan would be implemented.
Stocks favored by retail investors should close higher for the week, even if a rally on Thursday appeared to be losing steam. Most of the so-called “meme” stocks rose in pre-trading hours.
(Reporting by Ambar Warrick in Bengaluru; editing by Maju Samuel)