U.S. stock futures were mixed early Monday after a week in which indexes hit multiple new highs.
Dow Jones Industrial Average futures fell 93 points, or 0.2%. Contracts tied to the S&P 500 were off 0.1% while futures on the technology-heavy Nasdaq Composite were up 0.1%.
Signs that inflation is cooling and the economy is slowing, but still holding up, helped push the S&P and Nasdaq to new record closes several times last week. The optimism was enough to overshadow the Federal Reserve’s signals that interest-rate cuts will come later than previously expected. This week will have one fewer trading day because of the Juneteenth holiday on Wednesday.
“Even though the stock market has surged so far this year, valuations are very reasonable for most stocks,” said James Demmert, chief investment officer at Main Street Research. “The Fed may not need to cut rates this year–but if they do it will be even more bullish for equities–particularly tech stocks.”
The yield on the benchmark 10-year Treasury note was little changed at 4.238% early Monday, compared with about 4.46% a week ago. The two year yield was at 4.723%, down from 4.87% a week ago.
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