Stock futures are flat in overnight trading after the Dow and S&P 500 closed at record levels

Stock futures held steady in overnight trading on Monday after the Dow Jones Industrial Average and S&P 500 both closed at record highs, with strong economic data fueling hopes for a smooth recovery.

Futures on the Dow Jones Industrial Average and S&P 500 futures had changed little. Nasdaq 100 futures were up 0.2%.

Wall Street rose to record levels on Monday after a burst of jobs report and a surge in service sector activity showed that the economic recovery was gaining momentum amid accelerated vaccine rollouts.

“Vaccinations are rolling out in record time and historic stimulus efforts from Congress have all set the stage for continued positive market momentum,” said Chris Larkin, director of trade and investment products at E-Trade Financial.

Bond yields returned to a quiet session with 10-year government bond yields stable at 1.71%, allay fears of rising inflation.

Loretta Mester, president of the Cleveland Federal Reserve, told CNBC on Monday that she is largely unconcerned about the rise in government bond yields this year.

“I think higher bond yields are quite understandable in the context of the improvement in the economic outlook. The increase was an orderly increase,” said Mester. ‘So I’m not worried about the increase in revenues right now. I don’t think the Fed can do anything to respond. ‘

Investors continue to assess President Joe Biden’s $ 2 trillion infrastructure proposal and the likelihood of it becoming a reality. While politicians on both sides of the aisle support funding to rebuild US roads and bridges, disagreements remain over other priorities and the final scope of the bill. There is also debate about Biden’s plan to partially increase corporate tax to 28% to fund the plan.

Biden said on Monday that he is not worried an increase in corporate tax would hurt the economy. Conservative Democrat Senator Joe Manchin of West Virginia reportedly said he opposes the proposed 28% tax increase.