The New York Stock Exchange is expected to open little changed in early morning trading on Monday after the S&P 500 and Nasdaq hit record highs last Friday.
Thirty minutes before the start of trading, futures for major stock indexes in New York were stable or down around 0.2%, suggesting early trading would be roughly balanced.
The S&P 500 and Nasdaq rose 1.6% and 3.3%, respectively, last week, marking their seventh consecutive week of gains in eight weeks and hitting new all-time highs.
But with Wall Street hitting record high after record high and the VIX index trading at an all-time low, investors may not be as confident as they seem.
“The incredible resilience of the US stock market is astonishing,” said Alexandre Valades, head of market analysis at IG France.
“It’s worth remembering that during the eurozone debt crisis, the S&P 500 fell almost 20% between May and August 2011 and then recovered,” he points out, and may see this as a sign of new volatility to come.
Other factors remain that could roil markets, including persistent inflation that is weighing on household morale and beginning to jeopardize the Fed’s interest rate cuts.
In the bond market, the yield on the 10-year Treasury note recovered slightly to 4.27% after hitting a nearly three-month low last week.
Oil prices are also recovering from declines as the third quarter approaches, which typically means increased demand associated with the holiday season.
Light U.S. crude oil (West Texas Intermediate, WTI) rose 0.4% to above $78.7.
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