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S&P 500 and Nasdaq hit new record highs as Wall Street rises
U.S. stocks held near record levels on Monday ahead of a holiday-shortened trading week, as Wall Street wondered whether the rally that roared until 2024 has more room to run.
The high-tech Nasdaq Composite (^IXIC) rose 0.6% after the index marked a “perfect” week in Friday’s session with his fifth consecutive record closed. The S&P 500 (^GSPC) gained 0.5%, while the Dow Jones Industrial Average (^DJI) erased previous losses and rose 0.2%.
Stocks continued to rise as a technology-driven rally led Wall Street will review its targets for next year for the S&P 500. Evercore ISI raised its year-end price target to 6,000, while Goldman Sachs raised its target to 5,600. The benchmark index surpassed the 5,400 level for the first time last week.
With last week’s double dose of inflation reports and the Federal Reserve meeting supporting markets, fewer catalysts are expected to greet investors this week. The highlight will be Wednesday’s retail sales report, which gives a glimpse into the health of the North American consumer.
Fed policymakers will likely resume the conversation following last week’s decision. Minneapolis Fed President Neel Kashkari on Sunday suggested that a December rate cut it could be the Fed’s only measure this year. Investors are forecasting about a two-thirds chance the central bank will begin its cuts by September, according to the CME FedWatch Tool. John Williams of the New York Fed and Patrick Harker of the Philadelphia Fed are scheduled to appear on Monday.
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- Monday, June 17, 2024 at 6:54 pm GMT+2
S&P 500 and Nasdaq extend session gains to hit new highs
The major averages were all higher on Monday with the Nasdaq Composite (^IXIC) and S&P 500 (^GSPC) reaching new intraday highs.
The Dow Jones industrial average (^DJI) erased previous losses and rose 0.3%.
Technology and consumer discretionary stocks outperformed as Apple shares (TO APPLY),Tesla (TSLA) and chipmaker Broadcom (AVGO) led the gains.
Oil prices rise as market expects summer demand to keep supply tight
Oil futures rose about 1% on Monday, building on last week’s gains after a selloff earlier this month.
On Monday, West Texas Intermediate (CL=F) was trading just over $79.50 per barrel, adding to a gain of about 4% last week.
Brent (BZ=F), the international reference price, fluctuated above US$83.50 per barrel on Monday.
Futures fell earlier this month after oil alliance OPEC+ announced it would extend its production cuts until 2025, but some of its voluntary reductions would begin to be phased out from October.
Prices rose last week on expectations that summer transport and refrigeration demand would keep supply tight.
Analysts at Goldman Sachs recently predicted that Brent crude prices will rise to $86 per barrel later this summer.
Major averages turn green as Nasdaq and S&P 500 near record highs
All major averages turned green by mid-morning.
The Nasdaq composite (^IXIC) which was positive for most of the session, gained nearly 0.2% while the S&P 500 (^GSPC) rose 0.1%. The Nasdaq and S&P 500 closed at record highs last week.
The Dow Jones industrial average (^DJI) erased previous losses to rise above the flat line.
Nvidia reaches new record while the rest of the market has changed little
Nvidia (NVDA) reached new record highs on Monday, as the chip giant continued to lead the Nasdaq Composite (^IXIC) higher.
Shares gained nearly 1% while the rest of the market was silent. Nvidia is up more than 170% year to date.
Nvidia has far outperformed the rest of the ‘Magnificent Seven’ stocks and the Nasdaq 100 (^NDX) components.
Stocks Little Changed to Start Shorter Trading Week
Stocks were little changed on Monday, kicking off a holiday-shortened trading week.
The Nasdaq composite (^IXIC) gained nearly 0.1% after the tech-heavy index hit five consecutive sessions of record closings last week.
The S&P 500 (^GSPC) fell 0.1% after also reaching record highs last week, while the Dow Jones Industrial Average (^DJI) lost about 0.4%.
The stock market has been slowly rising despite investors’ lowered expectations for rate cuts in 2024. The market now predicts the Federal Reserve will cut rates just once this year, following the central bank’s latest policy meeting this week last.
Technology-related stocks continued to rise on Monday. Year-to-date, the S&P 500 information technology sector ETF (XLK) rose more than 18%, compared to the broader benchmark’s 13% gain.
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