Wall Streets main indexes were set to open higher on Tuesday, kicking off a week packed with major economic data that is expected to shed more light on the path of inflation.
Dow and SP 500 futures were near record highs, set to extend last weeks strong gains as investors bet on economically sensitive stocks benefiting the most from a postCOVID19 recovery.
The SP 500 rose to a level last Friday that was within 0.6 of its record high as investors were unperturbed by a surge in key inflation readings for April following reassurances from Federal Reserve officials that the ultraloose monetary policy would remain in place.
Investors are now awaiting key manufacturing and services sector PMIs later in the week to judge the pace of an economic reopening, with the main event of U.S. payrolls due on Friday.
For now, they investors are embracing the economic data that shows improvements in the economy and are ignoring data that suggests that its going to lead to much higher prices and shortages that affect specific companies, said Rick Meckler, partner, Cherry Lane Investments in New Vernon, New Jersey.
The main driver behind the stock market is the reopening of the country… thats motivating investors to feel a sense of optimism about markets and cause them to come back in and buy stocks with the idea that things will be better by the fall and earnings will improve.
Industrial and airline stocks, which stand to perform better as the economy reopens, were among the top…