S&P 500 Remains Flat on Tuesday Hovering around Its All-Time High

UTC by Bhushan Akolkar · 3 min read
S&P 500 Remains Flat on Tuesday Hovering around Its All-Time High
Photo: NYSE / Twitter

The market remained flat on Tuesday while Airline stock picked up momentum as the CDC eased up travel restrictions to nearly 61 countries.

On Tuesday, June 8, the broader market index S&P 500 ended the session on a flat note facing strong resistance at its all-time high levels. The S&P 500 (INDEXSP: .INX) ended at 4227 levels, just short of May’s all-time high of 4238.

Not only the S&P 500 but also other indexes also remained flat on Tuesday. The Dow Jones Industrial Average (INDEXDJX: .DJI) tanked 30.42 points or just around 0.1% closing at 34,599.82. On the other hand, the tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) has gained 0.3% closing at 13,924.91.

On Tuesday, the airline stocks remained upbeat as the Centre for Disease Control (CDC) eased the travel restrictions for 62 countries. This includes countries like South Africa, France, Canada, Italy, Spain, and Japan. The Delta Airlines (NYSE: DAL) stock surged over 2% while the United Airlines (NASDAQ: UAL) surged 0.75% on Tuesday. 

Investment firm Jefferies update the DAL stock to buy on optimism around rising international and business travel. The investment firm is bullish on the post-pandemic recovery of this airline stock.

Southwest Airlines (NYSE: LUV) also announced upsizing its order for the 737 Max model by three dozen planes. This order uptick comes on the backdrop of improvement in travel demand. Boeing stock (NYSE: BA) ended in green on Tuesday.

Job Openings Surge to a Record High in April

The data from Labor Department’s Job Openings and Labor Turnover Survey showed that the job openings for the month of April 2021 surged to a new record high. This comes as the US is planning more vaccinations amid the economic recovery. In a note to investors, JPMorgan strategist Daniel Silver, said:

“This recent surge in openings suggests that firms are having a hard time filling positions, and the number of quits reported in the JOLTS data also has surged largely, suggesting workers are able to find—or confident in their abilities to find—new positions. Both of these factors signal a need for firms to raise wages, and we have seen a variety of related measures pick up lately.”

On Thursday, June 11, the US shall be releasing its consumer price index data for the month of May. As per Dow Jones, economists are expecting a 4.7% surge in the CPI from a year ago. In April 2021, the CPI increased by 4.2% on a yearly basis registering the fastest rise since 2008.

Next week on June 15 and June 16, the US central bank officials will announce some key decisions on handling inflation and the monetary policy. Thus, all eyes will be on the Federal Open Market Committee meeting. Deutsche Bank has already expressed concerns over the rising inflation and noted that Fed’s loose monetary policy can spiral into the next big recession.

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