Last week, the US stocks closed in the cash market, with S&P 500 touching a record closing high.
On Sunday, June 13, the major US stock indexes opened flat during the pre-market session as investors are still digesting last week’s consumer inflation data. Also, they are still analyzing its possible impact on the Federal Reserve’s monetary policy decision at Wednesday’s meeting.
Meanwhile, the September E-mini S&P 500 Index futures rose 0.11% or 4.75 points at 4241.25.
Similarly, September E-mini Dow Jones Industrial Average futures climbed 0.08% or 27 points at 34384.
In addition, September E-mini NASDAQ-100 Index futures smashed 0.18% or 24.50 points at 14010.25.
Last week, the 30-stock Dow Jones Industrial Average plummeted 0.8%.
However, the NASDAQ Composite Index rose 1.9%, recording a four-week gain as the tech trade rebounded in favor. Consequently, the benchmark S&P 500 progressed 0.4% for three consecutive weeks.
Among its 11 major sectors, the rebounding financial stocks and technology are the best performers.
On the flip side, healthcare plunged on its largest percentage drop.
Meanwhile, the Food and Drug Administration faces huge criticism due to its approval of Biogen Inc.’s Alzheimer’s drug named Aduhelm.
Doctors and members of the FDA committee recently resigned due to the matter, claiming that the agency’s approval of the drug doesn’t have strong evidence in fighting the disease.
Upon the administration’s consent of the drug, Biogen’s shares advanced 38.3% at $395.85.
However, as the issue broke out due to multiple doctors claiming its ineffectiveness, its shares sank 4.4%. At the same time, the whole healthcare sector collapsed to 0.7%.
Fed Meeting Worries
This week, the Fed’s two-day policy meeting on June 15-16 will likely dominate investor’s behaviors.
Even though the central bank should not take action, its interest rate forecasts, rising inflation, and the economy might move the market.
On Wednesday, Fed Chairman Jerome Powell should affirm the Fed’s commitment to the easy policy.
However, inflation concerns and Fed’s reaction will likely influence the market direction, especially following the recently released May consumer inflation reading.
Some investors worry that the markets grew too complacent on inflation and other risks that could hinder the current rally. This is from the potential higher taxes to rising economic growth rates.
Broadly, the bullish sentiment among each investor has been over its historical average of 38% for the 25 of the last 30 weeks.
Meanwhile, the bearish sentiment is under its historical average of 30.5% for the 18th consecutive week.
