Traders work on the trading floor of the New York Stock Exchange.
Brendan McDermid | Reuters
Stock futures rose on Monday as the second half of 2024 begins.
Futures and Dow Jones Industrial Average increased by 96 points, or 0.2%, while S&P 500 Index Futures up 0.2%. Nasdaq 100 Futures traded slightly higher.
Wall Street’s major stock indexes experienced losses following a strong first half of trading. Continued excitement around artificial intelligence and stocks like Nvidia leading gains S&P 500 Index The increase was 14.5%, while Nasdaq Index up 18.1%. this Dow Jones Industrial Average Due to the decline in the second quarter, the performance was poor, with a growth of 3.8%.
For the quarter, the S&P and Nasdaq rose 3.9% and 8.3% respectively, while the Dow Jones fell 1.7%. The Nasdaq rose for a third straight quarter for the first time since ending five consecutive quarters of gains in 2021.
While there are concerns that P/E ratios have reached higher levels, some expect this technology-driven momentum to continue at least through the summer.
“We don’t see much evidence that tech is slowing down,” King Lip, chief strategist at BakerAvenue Wealth Management, told CNBC’s “Closing Bell” on Friday. “If anything, you could say it’s accelerating.”
He expects the sector to encounter some headwinds during seasonal weakness and profit-taking in September and October and around the election, but thinks valuations are reasonable.
“The reality is that these companies are very well managed regardless of the circumstances, and in times of economic growth, their profits can grow significantly,” he said. “These companies have delivered.”
Monday kicked off a holiday-shortened trading week, with markets closed Thursday for the Fourth of July. On Friday, investors will get important clues about labor market conditions with the June jobs report.
S&P PMI manufacturing and ISM manufacturing data for June and construction spending data for May will be released on Monday.
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