Investors wait for signs that the Fed may start tightening policy

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Investors wait for signs that the Fed may start tightening policy

On Thursday investors traded in a tight range as they waited for inflation data for signs that the Federal Reserve could start tightening monetary policy faster than expected.

The Labor Department’s report, due in a week at 8: 30 a.m. The Consumer Price Index will likely show that the price index decreased 0.4% in April after 4.8% surged in April, the largest gain since June 2009, as speedy vaccinations helped reopen the economy.

While the Fed has reiterated that the spike in inflation would be temporary, investors fear that a bigger than expected surge could push the central bank into tightening policy earlier than expected.

The Fed's monetary policy meeting next week will be closely monitored for any signals. The labor market and inflation are two factors for the Fed to consider tightening. While inflation has risen, recent payroll data was underwhelming.

Investors were also watching for weekly jobless claims data, due at 8 : 30 a.m. U.S. S&P 500 cash - miners were up 3 points or 0.07% at 06:36 a.m. Dow E-minis were up 41 points or 0.24%, while Nasdaq 100 E-minis decreased 35.75 points or 0.26%.

A rally in restocking so-called meme stocks looked likely to continue with shares of Clover Health - a recent target of retail buyers - rising 4.5% in premarket trade.

The stock which was most closely associated with the retail buying frenzy this year, fell 6.0% after it reported that Amazon named the head of their Australian business as CEO and reported quarterly results that were stronger than expected.

Boeing rose 1.1% after sources told Reuters United Airlines was in talks to increase a multi-billion dollar order for single-aisle jets potentially split between Boeing and Airbus Europe.

The focus was also on a major infrastructure bill, the discussions had hit a deadlock in the Senate over which we were only talking on one side and fighting against it.

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