In a remarkable turn of events, futures tied to the S&P 500 and the Nasdaq 100 achieved record highs on Friday, marking a stunning recovery from the lows experienced in April. This significant market movement comes just before an influx of crucial economic data, including key inflation numbers. The market has successfully navigated a myriad of challenges, such as tariff disputes, geopolitical tensions, and persistent inflation issues.
As of 12:55 AM Eastern Time, S&P 500 futures climbed by 0.11%, reaching an impressive 6,202.00. This surge broke the previous intraday all-time high of 6,147.43 set in late February. Meanwhile, Nasdaq 100 futures also saw an increase of 0.11%, and the Dow Jones Industrial Average futures gained 62 points, equivalent to a 0.14% rise.
The Nasdaq Composite experienced a significant jump of nearly 1%, positioning it close to achieving another record high. The Dow also saw a modest increase of about 0.14%. According to Rick Rieder, Chief Investment Officer for Global Fixed Income at BlackRock, in an interview on CNBC's Closing Bell, the markets are currently in a state of equilibrium. He noted, "There is so much money that wants to come into the market that didn't for a while. And I just think if you don't have any negative news, the natural gravitational pull is across all these assets."
These recent gains have propelled the Dow and S&P 500 up more than 2% over the week, while the Nasdaq has surged over 3%. Investors are keenly awaiting additional economic indicators as they prepare for the latest data release.
On Friday, traders will closely monitor the May reading of the Personal Consumption Expenditures Price Index, which is expected to be released in the morning. Economists surveyed by Dow Jones anticipate that the index will rise by 0.1% for the month and by 2.3% year-over-year. Additionally, the core PCE is projected to increase by 0.1% from April and by 2.6% compared to the same month last year. Beyond inflation figures, market participants will also pay attention to data on personal income, consumer spending, and consumer sentiment.
The financial markets are poised for a critical period as they absorb the upcoming economic data. With record highs for major indices and a strong investor appetite, the outlook remains optimistic, provided that no significant negative news disrupts the current momentum.
