Stock index futures point to an all-time high

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US stock futures rose, pointing to gains for the major indexes at the beginning of August as investors rejoiced at solid earnings growth.

S&P 500-related futures rose 0.5% on Monday. A measure of large US stocks closed on Friday a sixth consecutive monthly advance, although share prices have fluctuated at times in recent weeks.

Contracts for the technology-focused Nasdaq-100 Index also rose 0.5% on Monday. Dow Jones Industrial Average futures advanced 0.4%.

Investors are optimistic that economic expansion will boost corporate earnings and enable stocks to continue rising, albeit at a slower pace. Some warn that the highly contagious Delta strain of the coronavirus, a prolonged period of inflation, and China’s efforts to rein in tech companies could lead to bouts of volatility.

“There are a few good reasons why the economy continues to grow at higher rates than usual,” said Edward Smith, chief investment officer at British investment firm Rathbone Investment Management. He said consumers are spending freely, companies are planning to invest in their businesses and companies are restocking stocks.

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