Inventory futures flat after S&P 500 hits new excessive, regardless of rising inflation

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Trader on the New York Stock Exchange, June 2, 2021.

Source: NYSE

US stock futures remained flat early Friday morning after the S&P 500 hit a new high during regular trading despite unexpectedly hot inflation data.

Futures linked to the Dow Jones Industrial Average gained 21 points, while the S&P 500 and Nasdaq 100 futures were largely unchanged.

During regular trading hours, the Dow Jones Industrial Average rose 19 points, or 0.06%, to 34,466.24. The S&P 500 ended the day up 0.47% at 4,239.18. The Nasdaq Composite ended the day up 0.78% at 14,020.33.

The Labor Department released consumer price index data Thursday showing that inflation is rising the fastest since 2008 as the economy recovers from the pandemic-induced recession.

The CPI represents a basket of food, energy, groceries and prices across a range of goods and was up 5% year over year in May.

The markets shrugged at the news, however.

“A significant portion of this inflation could prove temporary, as nearly half of the above-average rise in inflation is due to the base effects of last year’s economic slowdown and even supply constraints should be temporary as companies increase productivity and catch up,” “Jason Pride , CIO for personal wealth at Glenmede.

Regardless of this, the initial jobless claims for the week ending on the 5th