Stock futures opened near the flat line Monday evening after a meandering session during the regular trading day.
Contracts on the S&P 500 ticked up. Earlier, the index ended just a tick below the flatline and was less than half a percent below its all-time high. The Dow also ended lower, while the Nasdaq pushed into positive territory.
Investors this week have been digesting signals from officials over the path forward for monetary and fiscal policies, and what these might suggest for interest rates and corporate earnings. Treasury Secretary Janet Yellen over the weekend said higher interest rates “would actually be a plus for society’s point of view and the Fed’s point of view,” according to an interview with Bloomberg.
Traders, however, have been less convinced. The prospects of higher interest rates could weigh on stock valuations, and additional corporate tax reforms could additionally cut into profits for major companies. Amazon (AMZN) shares fell on Monday following a report that Group of Seven finance ministers were looking to include the e-commerce giant in new global tax proposal. And investors continue to eye negotiations between President Joe Biden and members of Congress for his multi-trillion-dollar infrastructure proposal, which would likely be funded in part through increases to corporate taxes.