Stock futures fall slightly as Wall Street focuses on tense debt ceiling negotiations
Traders on the ground of the NYSE, May 17, 2023.
Stock futures retreated slightly on Sunday night as merchants monitored the negotiations over the U.S. debt ceiling.
Futures for the Dow Jones Industrial Average ticked down 48 factors, or about 0.1%. S&P 500 futures dipped about 0.2%, and Nasdaq 100 futures additionally shed 0.1%.
Stocks rose final week regardless of the uncertainty in Washington. The Nasdaq Composite climbed 3.04%, whereas the S&P 500 gained 1.65%. The Dow added 0.38%.
President Joe Biden and House Speaker Kevin McCarthy, R-Calif., are set to fulfill Monday to continue negotiations. Treasury Secretary Janet Yellen has mentioned the U.S. might default on its debt as early as June 1.
The market has continued to grind larger, led by tech shares, even within the face of a possible debt default and cussed inflation. Bank of America strategist Savita Subramanian on Sunday hiked her year-end target for the S&P 500 to 4,300 from 4,000, saying that the main target of corporations on effectivity would make earnings extra steady and that shares weren’t overvalued.
“Current valuations are not low, but rarely are low during profits recessions. On cyclically adjusted earnings, valuations argue for price returns of 5% per year for the S&P 500 over the next decade,” Subramanian mentioned in a word to purchasers.
The first-quarter earnings season is winding down, however there are a couple of notable reviews within the coming days, with Zoom Video on Monday and Lowe’s and Dick’s Sporting Goods on Tuesday.
The upcoming week has a comparatively gentle slate of financial knowledge, highlighted by a second studying for first-quarter GDP on Thursday and the private consumption expenditures inflation gauge on Friday. The launch of the Federal Reserve assembly minutes on Wednesday might additionally shed gentle on how central bankers are excited about the potential for additional charge hikes.
Traders will even be maintaining a watch on JPMorgan Chase’s investor day on Monday.