Stock futures are flat after the Dow’s record close on Friday

Stock futures were flat in overnight trading on Sunday after the Dow Jones Industrial Average posted a record close on Friday following a stronger than expected employment report.

Dow Jones futures added 2 points, or 0.01%. S&P 500 futures were down 0.06% and Nasdaq 100 futures were down 0.13%.

US senators met on Sunday to work towards passing a $ 1 trillion infrastructure bill, a top political priority for President Joe Biden. The Senate is expected to hold another key procedural vote on Sunday night and vote on the final passage on Tuesday. The bipartisan package is expected to have enough Republican support to pass through the Senate and go to the House for consideration in September.

Movements in futures trading came after the Dow Jones rose 144.26 points, or 0.4%, to close at a record high of 35,208.51. The S&P 500 rose 0.17% to its own closing high of 4,436.52. The Nasdaq Composite reversed the trend, dipping 0.4% to 14,835.76. All three major indices ended the week higher and had their second positive week in three.

Friday’s Department of Labor employment report showed that the US economy created 943,000 jobs in July. Economists expected 845,000 new jobs last month, according to Dow Jones estimates. The unemployment rate fell to 5.4%, below expectations of 5.7%.

“You’ve seen a lot more jobs being created in the areas that are reopening – restaurants, hotels, logistics, transportation,” said Larry Adam, director of investments at Raymond James. “It’s a good sign. I think it gives more purchasing power to the consumer in the future and I think it’s ultimately a good thing for the economy.”

Signs of a strong economic recovery could prompt the Federal Reserve to withdraw its monetary support measures and prepare to start scaling back its bond buying program.

“If it continues to this magnitude, it will likely bring the Fed a little earlier in the game when it comes to the cut,” Adam said.

The benchmark 10-year Treasury bond yield jumped to 1.3% after the better-than-expected jobs report. The 10-year rate this summer fell sharply from its March highs, as it approached 1.8%.

The financial sector led the gains on Friday as rates edged up, raising the prospects for bank profitability. Industrials, retailers and energy stocks also rose as the strong jobs report eased concerns about the economic recovery.

Meanwhile, tech stocks retreated after the yield jump. Rising rates reduce the value of future earnings and therefore can hit growth stocks like tech names particularly hard.

Investors are awaiting key inflation data scheduled for release this week. The consumer price index and the producer price index are expected to be released on Wednesday and Thursday, respectively.

Several Fed officials are expected to speak in the coming week, with investors listening intently for insight into the central bank’s decision-making. Atlanta Fed Chairman Raphael Bostic, Richmond Fed Chairman Thomas Barkin, Chicago Fed Chairman Charles Evans, and Kansas City Fed Chairman Esther George are all expected to speak this week.

Companies such as Tyson Foods, AMC Entertainment, Coinbase, Lordstown Motors, Bumble, Palantir, Disney, Airbnb and DoorDash are expected to release their quarterly results this week.