Traders on the floor of the New York Stock Exchange, May 17, 2023.
Source: NYSE
Stock futures eased slightly late Sunday as traders focused on U.S. debt-ceiling talks.
Dow Jones Industrial Average futures were down 80 points, or about 0.24%. S&P 500 futures fell about 0.3%, while Nasdaq 100 futures also fell 0.3%.
Stocks rose last week despite the uncertainty in Washington. The Nasdaq Composite rose 3.04%, while the S&P 500 gained 1.65%. The Dow rose 0.38%.
President Joe Biden and House Speaker Kevin McCarthy (R-Calif.) are scheduled to meet Monday to continue talks. Treasury Secretary Janet Yellen said the US could default on its debt as early as June 1.
Even in the face of a potential debt default and stubborn inflation, the market continued to move higher led by technology stocks. Bank of America strategist Savita Subramanian on Sunday raised her year-end target for the S&P 500 to 4,300 from 4,000, saying the company’s focus on efficiency would make earnings more stable and stocks not overvalued.
“Valuations aren’t low right now, but rarely are during a profit recession. Based on cyclically adjusted earnings, valuations suggest a 5% annual price return for the S&P 500 over the next decade,” Subramanian said. said in a note to clients.
First-quarter earnings season is drawing to a close, but there are some noteworthy reports in the coming days, among them zoom video monday and Lowe’s and Dick’s Sporting Goods Tuesday.
The upcoming week of economic data has been relatively light, underscored by first-quarter GDP on Thursday and personal consumption expenditures inflation on Friday. Minutes from the Fed meeting, released on Wednesday, could also shed light on how central bank officials are considering the possibility of further rate hikes.
Traders will also be closely watching JPMorgan’s investor day on Monday.