(PatriotWise.com)- As trading returns after the Memorial Day weekend, US equity futures moved lower Tuesday amid concern that central banks worldwide have failed to get in front of the historic inflation that continues to slow economic growth in major world markets.
European inflation hit a record high of 8.3 percent in May following Monday’s report from Germany that showed the fastest pace in consumer price increases in over a half-century.
President Biden is scheduled to meet with Jerome Powell, the chairman of the Federal Reserve on Tuesday to discuss the current state of inflation. On Monday someone wrote a Wall Street Journal op-ed purportedly by President Biden claiming that Vladimir Putin is to blame for the current inflation.
Last week’s rally on Wall Street was the strongest in two months. Bank of America’s Flow Show suggests about $22 billion poured into US equity funds.
The upcoming May jobs data is expected to show an additional 320,000 jobs added. Whether the expected number is met remains to be seen.
The US dollar index rose 0.3 percent higher to 101.963 during overnight trading while benchmark 10-year Treasury bond yields rose to 2.869 percent.
Heading into Tuesday’s trading, futures tied to the Dow indicated a 265-point opening decline. Those linked to the S&P 500 were priced for a 31-point downward move. Futures tied to the tech-heavy Nasdaq were indicating a 70-point decline at the opening bell. Nasdaq futures are down 23.4 percent for the year.
Shares in Tesla moved higher in pre-market trading Tuesday following reports that the company’s key Shanghai factory is close to returning to pre-COVID output levels as the city moves to end its two-month lockdown.
Thanks to the record-breaking Memorial Day weekend launch of Paramount’s “Top Gun: Maverick,” AMC Entertainment shares rose 13.5 percent higher in pre-market trading Tuesday morning. Shares in Paramount Global increased 1.53 percent to $34.43.
According to Comscore data, the Top Gun sequel earned more than $153 million over the holiday weekend, far exceeding industry forecasts and topping the previous record set in 2007 by “Pirates of the Caribbean: At World’s End.”