The S&P 500 and Nasdaq were at a pace to open near-record levels as technology-related growth stocks rose, while investors awaited data on the health of a U.S. labor market recovery and corporate earnings later in the week.
Nasdaq 100 e-minis rose 40 points or 0.28%, with Microsoft Corp, Amazon.com Inc and Facebook Inc adding about half a percent in pre-market trading.
The S&P 500 on Friday logged its best weekly performance in 20 after a two-party deal on a $ 1.2 trillion infrastructure spending deal and waning concerns over a faster-than-expected Federal Reserve policy tightening.
Both the S&P 500 and Nasdaq hit a number of record highs last week. But the tech-heavy Nasdaq’s gain of 4.4% exceeds its peers in June, as investors pile back to technology-oriented growth stocks on declining concerns about current inflation.
“It is encouraging that investors are willing to rotate instead of retiring, which means selling everything out. Securities are not dead, especially if we end up getting an infrastructure package, ”said Sam Stovall, CFRA chief investment strategist.
As the S&P 500 has risen almost 14% as the first half of 2021 approaches the end, activity in some areas of the market indicates concern about potential volatility, with some investors suggesting that the market may be delayed for a significant recovery.
8:21 ET the Dow e-minis fell 47 points or 0.14% and the S&P 500 e-minis rose 1.75 points or 0.04%.
Quarterly results from Micron Technology, ConocoPhillips and Walgreens are expected for this week. In the economic field, attention will be on consumer confidence data, a private job report and an important monthly employment report.
“The Fed is looking at the payroll number, which is not a farm. If we end up with a number close to Wall Street estimates of 700,000 or more, it could end up increasing the Hawkish-fed rhetoric, ”Stovall added.
Boeing Co fell 1.4% after the US Federal Aviation Administration told the aircraft manufacturer that its planned 777X is not yet ready for a significant certification step and warned that it “realistically” would not certify the aircraft until mid to the end of 2023
U.S. listed shares in Chinese technology giant Baidu rose 1.0% after its smart electric vehicle venture with carmaker Geely, Jidu Auto, hired Frank Wu, formerly of Cadillac, to lead its design studio.
Virgin Galactic jumped 6.5% after Bernstein raised its price target on the spaceship company’s shares.
(Reporting by Medha Singh and Devik Jain in Bengaluru; editing by Maju Samuel)