Traders on the floor of the NYSE, June 3, 2022.
Stock futures were little changed on Monday evening after a sleepy day of trading as investors await key inflation data due out later in the week.
Futures contracts linked to the Dow Jones Industrial Average edged up 0.01%. S&P 500 and Nasdaq 100 futures were also close to the flatline.
In Monday’s regular trading, all three major averages ended slightly higher. The Dow ended the day up about 16 points, or less than 0.1%, after jumping more than 300 points earlier in the day. The S&P 500 added 0.3% and the tech-heavy Nasdaq Composite rose 0.4%.
The indices gave up most of their early-day gains as the 10-year Treasury yield climbed 3% and hit its highest level in nearly a month.
Sentiment was largely muted on Monday, with no US economic data releases and a quiet Federal Reserve in its blackout period. There were also no reports of big business earnings.
Investors are still weighing whether the recent rebound in equities is a bearish rally or whether the market bottomed out after this year’s selloff.
“Since the start of the year, we’ve been seeing altitude sickness when you look at the valuation multiple,” said Ed Yardeni, president of Yardeni Research. He spoke on CNBC’s “Closing Bell: Overtime.”
“To a large extent, clearly, in hindsight, the market was overvalued,” he said. “A lot of that was about negative cap HQ, large cap names, related companies. I think we’ve seen a huge correction in that area. And now the question is whether the market can accept the type of earnings expectations that analysts are delivering and whether those expectations will be correct.
Investors are still tracking what is a lighter week in corporate earnings. JM Smucker, United Natural Foods and Cracker Barrel are all scheduled to show up before the bell on Tuesday.
In economic data, May’s consumer price index reading is the most important one for investors to focus on, due out on Friday. If the reading is colder than the April figures, as expected, some could interpret it as a sign that inflation has peaked.