After 7 consecutive days of gains propelling US stocks to fresh all time highs, a feat last achieved in 1997, US equity futures were flat during Monday’s subdued holiday session.
As WTI crude rose for a fourth day in five as the UAE held out against an extension of output increase by the OPEC+ alliance, threatening a collapse of the oil cartel which is meeting later today in what may be a decisive meeting for oil. The dollar dropped for a second day.
“Today’s public holiday suggests trading will be quiet, although the Fed story will very much re-emerge on Wednesday evening when investors pore through the minutes of the pivotal June 16th FOMC meeting,” ING Groep strategists including Chris Turner wrote in a note. “Before then, we expect much focus on the commodity complex.”
“Markets in general are still trying to find their feet,” said James Athey, investment director, Aberdeen Standard Investments. “Equities, of course, continue to shrug off or ignore anything that might be considered remotely negative as they continue their merry and complacent dance towards an inevitable reckoning.”
The S&P closed 0.8% at a new all-time high for a seventh straight day on Friday as data showed U.S. job growth surged the most in 10 months, although below the surface it was weaker than expected prompting some to question the Fed’s commitment to tapering as soon as later this month. Investors will watch Didi Global when U.S. markets reopen after China accelerated in crackdown on the ridehailing company.