Stock futures are flat after the S&P 500 posted a third straight week of gains

Traders on the floor of the NYSE, March 25, 2022.

Source: NYSE

U.S. stock index futures were flat overnight Sunday after the S&P 500 posted a third straight week of gains.

Futures contracts linked to the Dow Jones Industrial Average slipped 14 points. S&P 500 futures were flat, while Nasdaq 100 futures fell 0.14%.

Stocks advanced on Friday – the first day of the second quarter – with the Dow Jones and S&P gaining 0.4% and 0.34% respectively. The Nasdaq Composite added 0.29% and also ended the week in the green.

The Dow Jones, meanwhile, ended a two-week winning streak, down 0.12%.

Friday’s positive session came despite the March jobs report, which was below economists’ estimates. The US economy added 431,000 jobs during the month, while Dow Jones estimates forecast 490,000.

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“Strong gains on the jobs front continue to give investors the green light despite decades-long inflation highs and concerns over rate hikes and Fed tightening,” noted Peter Essele, chief executive. portfolio management for Commonwealth Financial Network. “The economy appears to be in exit speed mode, with the only concern being the amount of labor available to fuel the robust recovery,” he added.

An oft-cited recession signal was triggered on Thursday night when 2- and 10-year Treasury yields reversed for the first time since 2019.

“We believe the current flattening is due to concerns that the Fed is lagging the bull curve and tightening policy beyond neutral, which will hurt growth,” TD Securities said in a statement. note to customers.

Investors are also watching the latest developments in Ukraine. German Chancellor Olaf Scholz said on Sunday that Western nations would impose additional sanctions on Russia in the coming days.

“Equity and bond markets continued to send mixed signals about the economic outlook,” UBS said in a recent note to clients. “We caution against overinterpreting either signal. Yield curve inversions have historically predicted recessions with a long and uncertain lag, while hopes for ceasefire talks have fluctuated,” the company added.

On Wednesday, the Federal Open Market Committee will release minutes from the central bank’s March meeting, giving investors a better understanding of how the Fed views market conditions.

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