Nasdaq futures decline as commodities stoke CPI fear

Bloomberg

Nasdaq futures fall as surging commodity prices stoked concern about whether inflation will derail a growth rebound in the world’s largest economy and spoil a record stock rally.
The tech-heavy index has been whipsawed by the prospect of inflation which can threaten longer-horizon revenues typical of the industry. Contracts on the S&P 500 Index were steady. Treasury yields edged up towards 1.60% as traders brace for a busy week of auctions.
Gasoline jumped as much as 4.2% to a three-year high before paring gains after a cyberattack forced the closure of a key US pipeline. Iron ore futures surged and copper jumped to a record, adding to inflation worries.
The run-up in raw materials is intensifying debate ahead of a US CPI report this week that is forecast to show price pressures increased in April.
“The strong inflation figures that are expected this week could change the market narrative and raise concerns about the risk that inflation pressures are picking up significantly, even if the real economic recovery will remain far from complete for some time,” according to Credit Agricole SA strategists led by Jean-Francois Paren. “If this is the case, it could weigh on risk appetite in the coming days and weeks.”
Investors will also parse comments from a series of Federal Reserve speakers for guidance on their thinking about the path of growth and policy after
data on US payrolls trailed a
projected one million jump.
China’s onshore yuan hit its strongest level versus the dollar since 2018. The pound touched a 10-week high after UK elections denied Scotland’s main independence party an outright majority and strengthened the grip of the Conservatives
While European stocks opened flat, in Asia, Hong Kong and China stocks dropped.
Futures on the S&P 500 Index climbed 0.1% as of 9:10 am London time and the Stoxx Europe 600 Index increased 0.1%.
While the MSCI Asia Pacific Index advanced 0.5%, the MSCI Emerging Market Index gained 0.2%. The Bloomberg Dollar Spot Index was little changed and the euro declined 0.2% to $1.2143.
While the British pound jumped 0.6% to $1.4066, the onshore yuan strengthened 0.1% to 6.429 per dollar and the Japanese yen weakened 0.3% to 108.93 per dollar.
The yield on 10-year Treasuries increased one basis point to 1.59% and the yield on two-year Treasuries dipped less than one basis point to 0.14%.
While Germany’s 10-year yield gained one basis point to -0.21%, Japan’s 10-year yield decreased less than one basis point to 0.087% and Britain’s 10-year yield jumped two basis points to as much as 0.799%.
West Texas Intermediate crude gained 0.7% to $65.33 a barrel and Brent crude increased 0.7% to $68.73 a barrel. Gold strengthened 0.2% to $1,835.08 an ounce.