U.S. futures faltered on Wednesday as investors waited for notes from the Federal Reserve’s latest political meeting for clues as to how officials view inflation and the pace of the economic recovery.
S&P 500 futures and the Dow Jones industrial average fluctuated between gains and losses. The technology-intensive Nasdaq-100 futures were also relatively flat. On Tuesday, the indices retreated slightly after closing at record highs earlier in the week.
Signs that the economy is recovering from the coronavirus crisis have boosted investors and helped propel major indices to unprecedented levels this week. The rapid launch of vaccination, combined with both monetary and fiscal support, contributes to the recovery of the labor market and the manufacturing sector. Money managers bet that much of the economy will return to normal soon and give a boost to tourism and leisure companies.
“We expected the data to improve during this period and early signals show that the recovery is 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 is beginning to look more like a strong recovery in growth.”
Some investors remain nervous that lowering restrictions, combined with retained consumer demand, could drive up inflation and cause the Fed to raise interest rates sooner than expected.