4.10pm: Stocks hit fresh records
The S&P 500 hit another record at the end of Monday trading to close just above 5,473 points.
The index rose nearly 0.8% on the day for its 30th record high so far in 2024.
Meanwhile, the tech-heavy Nasdaq Composite advanced almost 1% to record its sixth consecutive record close of 17,857 and the Dow Jones gained 0.5% to reach 38,778.
Stocks have continued to rally, led by a tech-fueled surge that has prompted Wall Street to revise its year-ahead targets for the S&P 500.
With last week's inflation reports and the Federal Reserve meeting behind markets, fewer catalysts are expected this week. The highlight will be Wednesday's retail sales report, which provides insight into the health of the US consumer.
Regarding interest rates, Federal Reserve Bank of Philadelphia President Patrick Harker hinted at one rate cut in 2024. Minneapolis Fed president Neel Kashkari also suggested that a December rate cut could be the Fed's only move this year.
12.15pm: Tech-led rally boosts year-end forecasts
Stocks hovered near record-high levels at the midday point on Monday as Wall Street contemplated the sustainability of the robust 2024 bull rally amidst a holiday-shortened trading week.
The Nasdaq Composite edged up 0.1%, extending its streak of record closes following a strong finish last week. The S&P 500 also advanced 0.1%, while the Dow Jones Industrial Average recovered to trade flat after early losses.
Tech-driven gains have driven Wall Street to revise upward its year-end forecasts for the S&P 500, with Evercore ISI and Goldman Sachs raising their targets to 6,000 and 5,600, respectively. Last week, the benchmark index surpassed the 5,400 milestone for the first time.
With major inflation reports and the Federal Reserve meeting now behind them, investors are looking to Wednesday's retail sales report as a key indicator of US consumer strength.
Menawhile, Federal Reserve policymakers are expected to provide further insights following last week's decisions, with markets pricing in a likely rate cut by September. Minneapolis Fed President Neel Kashkari hinted at a potential December move being the only cut for this year.
The appearances of New York Fed's John Williams and Philadelphia Fed's Patrick Harker on Monday will be closely watched for further clues on monetary policy direction.
“After last week’s dot plot that showed Fed officials are now looking at one potential rate cut compared to an expectation of three it will be interesting to hear any new thoughts given inflationary data that is starting to trend lower again,” Freedom Capital Markets (NASDAQ:FRHC) chief global analyst Jay Woods wrote in a weekly newsletter.
“It’s a quiet week of major economic data so extra attention will be focus on the Fed speakers making the rounds.”
9.55am: Stocks open lower
The main US stock indices have all opened in the red, with many tech stocks trading lower.
With semiconductor giant AMD down 2.1%, Adobe dropping 2% and Meta Platforms falling 1.5%, the Nasdaq is down 0.27%, while the Dow Jones and S&P 500 are both 0.16% lower.
Small caps on the Russell 2000 are down 0.32%.
Nvidia started higher but is now in the red.
This morning, the US Supreme Court agreed to hear the chipmaker's appeal to block a securities fraud lawsuit from investors who have accused the company and CEO Jensen Huang of misleading investors about how much of its sales came from cryptocurrency miners.
The suit is led by the Sweden-based investment management firm Öhman Fonder.
8.55am: Mixed start expected
Traders were unsure if Wall Street's big tech stocks could continue their winning streak into this week, with the wider picture not overly optimistic.
US stock futures are mixed ahead of the open, with the Dow Jones down 0.26%, the S&P 500 down 0.1% and Russell 2000 also modestly lower, with the tech-laden Nasdaq 100 flat.
This echoed the tone from Friday’s close with the Nasdaq the only major index to end in positive territory closing out a winning streak of five days.
"The general market tone remains bullish, with tech stocks in the vanguard, especially any with direct connections to generative AI," said market analyst David Morrison at Trade Nation.
"NVIDIA continues to shine, and is trading at a fresh record high following its 10-for-1 stock split."
Looking ahead, US retail and industrial data is due tomorrow, with Wednesday the Juneteenth holiday, and Friday "triple witching hour", when markets can be shaken by the extra volatility from the simultaneous expiry of stock options, stock index futures and stock index options.
The volatility is especially increased as this marks the half-year point, as well as a quarterly expiry.