Stock Market Today: Dow, S&P Live Updates for June 7 - Bloomberg

U.S. equity-index futures dropped with Treasuries as investors weighed inflation risks and the impact of a minimum corporate tax on technology firms. The dollar ticked up.

Futures on the Nasdaq 100 and S&P 500 declined, while European stocks fluctuated between gains and losses. The 10-year rate added two basis points after Treasury Secretary Janet Yellen said a slightly higher interest-rate environment would be a plus. Oil in New York slipped after rising to $70 per barrel as short-term demand worries continued. Tesla Inc. dropped in premarket trading after canceling plans for a longer-range sedan.

While resurgent inflation has sparked a debate about when the Federal Reserve will start tapering monetary accommodation, recent data including the May nonfarm payrolls report seemed to vindicate the central bank’s dovish stance. Investors are trying to strike a balance between preparing for higher rates and riding a risk-on rally supported by Fed stimulus and a $4 trillion spending plan by President Joe Biden. Traders await the U.S. consumer-price index report Thursday for more clues.

“The slightly softer-than-expected rise in U.S. payroll employment in May probably won’t change the Fed’s thinking, but another pickup in CPI inflation likely to be reported on Thursday will further spur the taper talk,” Shane Oliver, head of investment strategy and chief economist at AMP Capital, wrote in a note.

Leveraged funds bullish Treasuries bets hit highest in 8 years

Yellen said Biden should push forward with his spending plans even if they spark inflation that persists into next year. Meanwhile, the Group of Seven rich nations secured a landmark deal that could help countries collect more taxes from big firms and enable governments to impose levies on U.S. giants such as Amazon.com Inc. and Facebook Inc.

June contracts on the tech-heavy Nasdaq index fell 0.3% highlighting investor concern that a pure growth narrative may no longer be enough to support stocks. Technology shares underperformed in Europe as well, with the benchmark gauge for the sector falling from the highest level since April.

Apple Inc, Twitter Inc., and Microsoft Corp. declined at least 0.5% each in premarket New York trading. Tesla fell 1.5% after Chief Executive Officer Elon Musk tweeted on Sunday the Model S Plaid+ will be canceled.

Bitcoin was steady around $36,000 after a roller-coaster ride over the weekend amid a cryptocurrency crackdown in China.

Hayden Briscoe, head of Asia Pacific fixed income at UBS Asset Management, discusses Federal Reserve policy and its implications for bond markets.

Source: Bloomberg

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Here are key events to watch this week:

Apple holds its annual Worldwide Developers Conference (WWDC) virtually for a second year, to announce new hardware and software and work with developers. Through June 11.
European Central Bank decision on Thursday and press conference with President Christine Lagarde.
Iran nuclear deal talks reconvene in Vienna Thursday.
U.S. consumer price index on Thursday.
Group of Seven leaders’ summit starts in Cornwall, England Friday.

These are some of the main moves in markets: