S&P500 and Nasdaq hit All-Time Records. Stock Futures Flat.

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Principal Points

• Futures markets hover largely unchanged from yesterday’s closing levels
• The S&P500 and the Nasdaq Composite finished at all-time records, up for five days straight

Stock index futures slipped slightly in pre-market trading on Thursday after major benchmarks extended their rallies to another set of fresh records. Dow Jones Industrial Average futures dropped about 20 points, while S&P500 futures were lower by around 0.1%. Nasdaq futures were down about 0.2%.

Major stock averages on Wednesday continued to be buoyed by increased investors’ confidence that the high valuations of the stock market were justified. Salesforce stock rose 2% in extended trading after the company reported fiscal second-quarter earnings. The software giant exceeded earnings forecast and also topped analysts’ estimates of forward guidance.

A broad uptick in stocks across the board helped the S&P500 and the Nasdaq Composite settle at new record highs. The S&P500 rose 0.2% to an all-time high of 4,496.19. During the session, the equity gauge crossed the 4,500 milestones for the time in its history.

The Nasdaq Composite also jumped to a new all-time closing high. The tech-heavy index added 0.15% to finish Wednesday action at 15,041.86. Both the S&P500 and the Nasdaq Composite were up for a fifth straight day.

The Dow Jones Industrial Average gained about 40 points, or 0.11%, to finish at 35,405.50.

Stock Markets Set to Benefit from Economic Reopening

Stocks positioned to benefit from the economic reopening and higher vaccination rates led the upside move. Shares in airlines, cruise lines, and financials were among the best performers of the day.

Investors felt comfortable betting on the risky assets now that the Food and Drug Administration has granted full approval for the Pfizer-BioNTech Covid-19 vaccine. Businesses and government institutions are hopeful that many among the hold-outs would now choose to get vaccinated. Some companies have also required from their employees a mandatory vaccine.

Goldman Sachs, for example, said yesterday it will require proof of vaccination from all staff and clients who enter the bank’s offices in the US.

Investors’ focus today and tomorrow would be on the highly-anticipated Jackson Hole symposium. An annual conference held by the Federal Reserve, the Jackson Hole summit would gather central bankers who are expected to update the markets on their plans around tapering monetary stimulus.

The US central bank has been buying bonds at a rate of $120bn per month in an effort to salvage the US economy. Now that the economic expansion has reached a satisfactory level that largely meets the Fed’s goals, policymakers announced they are preparing to tighten the vast monetary support at some point this year.

Jobless claims data slated for today is also expected to provide insight into the strength of the economy. Analysts’ estimates point that 350,000 Americans filed for unemployment benefits last week, compared to the prior week’s number of 348,000.

In Europe today, major indexes opened flat and slightly to the downside. The defensive approach to the market arrived after a relatively weak session on Wednesday. The Stoxx 600 yesterday was virtually unchanged, but still less than 1% from its all-time record.

Cryptocurrencies slid in the early hours of Thursday’s trading. Bitcoin is now floating around 3% lower on the day after it managed to claw back from a 3.5% intraday loss a day earlier. The leading token’s price now stands mildly above $47,000 per coin.