Futures U.S. stock markets faltered on Wednesday as investors waited for notes from the last Federal Reserve policy meeting to get clues as to how officials view inflation and the pace of economic recovery.
Futures linked to the S&P 500 index and the Dow Jones Industrial Average fluctuated between gains and losses. The futures of the Nasdaq-100, very heavy on technology, were also relatively flat. On Tuesday, indices retreated slightly after closing record highs earlier in the week.
Signs that the economy is recovering from the fall of the coronavirus have boosted investors and helped boost major indices to unprecedented levels this week. The deployment of rapidly advancing vaccination, combined with monetary and fiscal support, is helping the recovery of the labor market and the manufacturing sector. Money managers are betting that more of the economy will get back to normal soon and give a boost to travel and leisure businesses.
“We had expected the data to improve at this time, and early signs indicate that the recovery is absolutely on track,” said Hugh Gimber, global market strategist at JP Morgan Asset Management. “This is the period when the forecast for a strong recovery in growth begins to look more like a strong recovery in growth.”
Some investors remain nervous that easing restrictions, along with accumulated consumer demand, could drive up inflation and push the Fed to raise interest rates earlier than expected.