Investors are anticipating a busy week of data, including the Federal Reserve’s preferred measure of inflation, which is likely to affect the US equity futures as they suggest a pause for stocks around their all-time highs. The contracts for the Nasdaq 100 and the S&P 500 remained largely unchanged after the record-breaking rally of Wall Street stalled last week, primarily due to profit-taking in megacap tech stocks. It is important to note that the S&P 500 had its best month in over three decades in April, driven by the stimulus measures and hopes for a vaccine.
Berkshire Hathaway Inc. has reportedly seen a rise of up to 5.5% in premarket trading following its weekend earnings update, which is a notable development. This has set Warren Buffett’s conglomerate on course for a market value that is closer to $1 trillion, indicating a positive outlook for the company. It is worth mentioning that Berkshire Hathaway’s annual meeting was held virtually on May 1, where Buffett expressed his optimism about the US economy and emphasized the importance of investing for the long-term.
It is also noteworthy that the dollar and Treasury yields have ticked lower, indicating a possible shift in the market. Overall, it will be interesting to see how the market reacts to the upcoming data releases, as investors continue to weigh the impact of the pandemic on the global economy and the ongoing stimulus measures.