As investors returned from a three-day weekend, stock-index futures were in a holding pattern at record highs. Oil prices, which soared to six-year highs after talks between the Organization of Petroleum Exporting Countries and its partners failed to reach an agreement on a proposal to enhance output in the coming months, were also on investors’ minds.
What are the most important benchmarks doing?
The Dow Jones Industrial Average YM00, -0.09% was down 35 points, or 0.1 percent, at 34,642 in futures trading.
S&amp
Futures on the Nasdaq-100 index NQ00, +0.16% rose 15 points, or 0.1 percent, to 14,728.75.
Markets in the United States were closed on Monday in honor of Independence Day, which fell on Sunday. The S&P 500 SPX, +0.75 percent closed at an all-time high on Friday, the longest such streak since 1997, and the Nasdaq Composite COMP, +0.81 percent and Dow DJIA, +0.44 percent also finished at all-time highs. What is the market’s driving force? In recent weeks, stocks have progressively moved further into record territory as investors shifted their focus to a growing economy and the easing of inflation fears. “After a favorable close to Q2, risk sentiment remains optimistic as we start the second half of the year. The S& Increased COVID-19 vaccinations and central bank stimulus are seen as contributing to strong growth, while fears of uncomfortably high inflation have been kept at bay because the Federal Reserve and other central banks insist that increased price pressures are a temporary phenomenon caused by supply-chain bottlenecks, he said. Oil prices soared following the breakdown of OPEC+ talks aimed at further relaxing supply limitations beginning in August, analysts say, bringing inflation fears back into prominence. The talks were called off on Monday after the United Arab Emirates refused to budge on its demand to raise the baseline used to set its output level and opposed to a plan to prolong the framework for the current supply-cut program from April 2022 to the end of next year. The rise in oil prices will draw attention to energy stocks. In premarket action, the Energy Select SPDR ETF XLE, -0.22 percent was up 0.7 percent, while the SPDR S&P Oil & Gas Exploration & Production ETF XOP, -1.81 percent was up more than 1%. At 9:45 a.m. Eastern, the final reading of the Market services purchasing managers index for June will be released. The Institute for Supply Management’s services index, which will be released at 10 a.m., is predicted to drop from 64% to 63.3 percent. A value of greater than 50% shows that activity is increasing. Which businesses are being scrutinized?
Didi Global Inc. DIDI, -5.30 percent, a Chinese ride-hailing app, saw its stock tumble 17 percent in premarket activity after the Chinese Cyberspace Administration blocked new customers from signing up for DiDi’s ride-hailing app due to security concerns. Full Truck Alliance YMM, +2.26 percent shares fell about 17%, and Kanzhun Ltd. BZ, -2.13 percent shares fell more than 10%, as their apps were also prohibited. Existing app users will be able to continue to use their services.
Nextdoor Inc. is ready to go public, with the neighborhood network business announcing a merger agreement with special-purpose acquisition company Khosla Ventures Acquisition Co. II KVSB, +0.51 percent on Tuesday. The merged company is valued at around $4.3 billion./n
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