U.S. Equity Futures Little Changed After Major Averages Pulled From All-Time Highs – .

Stock Futures Stable After S&P 500 Close At Record – .

US stock index futures were little changed on Wednesday morning, after major averages ended in the red on Tuesday, weighed down by inflation fears.
Futures contracts linked to the Dow Jones Industrial Average lost 50 points. The S&P 500 and Nasdaq 100 futures contracts both traded around the flat line.

The Dow Jones closed the regular trading session down 107 points, or 0.3%. The drop came a day after the Dow Jones closed at a record high. The S&P and the Nasdaq Composite hit all-time highs on Tuesday before relinquishing those gains and ultimately closing lower. The S&P 500 plunged 0.35%, while the Nasdaq Composite lost 0.38%, each posting their first negative session in three.

The drop came after the Labor Department said inflation rose last month at its fastest pace in nearly 13 years. The consumer price index jumped 5.4% from a year earlier, which was above expectations of a 5% increase, according to economists polled by Dow Jones. However, since a significant portion of the overall increase came from a surge in used car prices, some were quick to argue that inflation would likely be transient.
In the middle of a bearish day on Wall Street, the S&P 500 tech sector resisted the negative trend and closed at a new all-time high. The other 10 S&P sectors plunged, with real estate leading the losses.
Major averages are still hovering around all-time highs, and Wall Street strategists are optimistic about what in the second half of 2021 as the economy continues to recover from Covid-19.
“After a year of 2020 that we will never forget, we look into the second half of 2021, and even 2022, with optimism for the future,” said Burt White, CEO and CIO of LPL. “We believe that we are at the start of the business cycle and that the next recession is potentially years away. “

UBS on Tuesday raised its S&P 500 target for December 2021 to 4,500, from a previous forecast of 4,400. The call is based on strong second-quarter earnings figures.

“We believe the bull stock market remains on solid footing, thanks to huge consumer cash balances, rising business investment and an ever-accommodating Fed,” the company said in a note to clients.

JPMorgan and Goldman Sachs kicked off the earnings season on Tuesday, with both banks beating both upper and lower estimates. Bank of America, Citigroup and Wells Fargo are expected to report their results before the market opens on Wednesday, as are BlackRock, PNC Financial and Delta.

A total of 23 S&P 500 companies will release quarterly results this week.

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