ASX set to rise despite choppy Wall Street session

US stock indexes gave up some of their recent gains on Monday on Wall Street, pulling the S&P 500 slightly below the record high it hit last week.

Technology, communication and energy stocks weighed on the market, outweighing gains by a broad mix of companies, including banks and those that rely directly on consumer spending, such as Nike and Chipotle.

The S&P 500 slipped by 0.1 per cent, the Dow Jones Industrial Average lost 0.2 per cent and the tech-heavy Nasdaq composite lost 0.4 per cent. The S&P 500 and Dow each set record highs on Friday.

Wall Street had a choppy session on Monday. Credit:AP

The Australian sharemarket is set to rise, with futures at 6.59am AEST pointing to a jump of 15 points, or 0.2 per cent, at the open.

Bond yields inched higher after easing most of last week. Investors have been focusing on the economic recovery as well as the risks higher inflation pose to consumers and companies. Those concerns have helped push up bond yields for much of this year.

Monday’s pullback snapped a three-day winning streak for the benchmark S&P 500, which closed out last week with its third straight weekly gain.

“It’s this back and forth as the market tries to figure out how strong the economy is going to be and how long its going to last,” said Tom Martin, senior portfolio manager with Globalt Investments.

Small company stocks, which have been outgaining the broader market this year, also fell. The Russell 2000 index of smaller companies gave up 9.69 points, or 0.4 per cent, to 2,233.78. The index is up 13.1 per cent so far this year, while the S&P 500, which tracks large companies, is up 9.9 per cent.

Technology stocks were the biggest drag on the market. Apple fell 1.3 per cent and Google’s parent company slid 1.1 per cent.

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