Tech optimism has yet to dissipate, with Nasdaq futures pointing to a strong start for these stocks, while Dow and S&P 500 futures were slightly lower. Sentiment ahead of the session will largely depend on the retail sales report due before the market opens and a series of speeches from Federal Reserve officials. Traders can also keep an eye on the updated annual budget from the Congressional Budget Office. Analysts are confident in the upward momentum that will carry the market throughout the year, basing their optimism on the likelihood of Fed rate cuts amid slowing inflation and an accelerating rally driven by artificial intelligence.
The main risk the market currently faces is the concentration of the stock market rally. The head of financing Louis Navellier eased concerns and said market scale would likely return. “With the likelihood that interest rates will eventually fall, and perhaps geopolitical easing as well, we hope that the rest of the market can start to perform better and improve the magnitude of returns,” he said. he declares.
| Futures contracts | Performance (+/-) |
| Nasdaq100 | +0.20% |
| S&P500 | -0.01% |
| Dow | -0.03% |
| R2K | -0.28% |
Clues from the last session:
Technology stocks spearheaded the market rally Monday, as the Nasdaq Composite and S&P 500 indexes posted new closing records and intraday highs. The Dow Jones Industrial Average ended a three-year losing streak and finished slightly higher for the session.
Stocks started on a mixed note, but sentiment turned uniformly positive as traders digested the optimistic forecasts issued by market strategists. They embarked on a steady recovery throughout the session before finishing solidly in the green.
The majority of S&P 500 sectors rose, with the exception of defensive stocks Utilities, Real Estate and Healthcare. Computer, consumer discretionary and industrial stocks led the market’s advance on Monday.
| Hint | Performance (+/-) | Value |
| Nasdaq Composite | +0.95% | 17,857.02 |
| S&P 500 Index | +0.77% | 5,473.23 |
| Dow Industries | +0.49% | 38,778.10 |
| Russell 2000 | +0.79% | 2,022.01 |
Analyst Views:
Professor Wharton Jeremy Siegel, WisdomTree’s senior economist said the Fed’s message was loud and clear. “The Fed’s cuts are contingent on the continuation of positive inflation trajectories which I hope will materialize,” he said in his weekly commentary.
The economist, however, issued a warning to investors. “Overall, the market moves through a complex set of economic indicators. We believe investors should remain vigilant and diversified in their investment approaches, particularly given the narrow focus of recent market rallies around specific technology stocks, which may not be sustainable in the long term,” he said. -he declares.
“FOMO still dominates the AI stock market.”
Chief Market Strategist, Carson Group Ryan Detrick has painted a very positive picture of the market, drawing on historical trends. In a post on X, formerly Twitter, he noted that Monday’s S&P 500 performance marked the index’s 30th record close this year. This has happened 20 times before and each time the index ended the year in the green, he said. The average and median gains of the index during these years are 19.6% and 19.5%, respectively, he added.
- The Commerce Department is scheduled to release its retail sales report at 8:30 a.m. EDT. On average, economists expect retail sales to rise 0.2% month-over-month in May, compared to unchanged sales the previous month. Core retail sales, excluding automobiles, are expected to grow 0.2%, the same pace as the previous month.
- The Federal Reserve will release the May industrial production report at 9:15 a.m. EDT. Monthly growth in industrial production is estimated at 0.4% after unchanged production in April.
- The Commerce Department’s business inventories report, due at 10 a.m. EDT, could show a 0.3% month-over-month increase for May, reversing some of the 0.1% decline in april.
- Treasury set to auction 20-year bonds at 1 p.m. EDT
- The Congressional Budget Office will release its updated budget forecast for the fiscal year at 2 p.m. EDT.
- Among the Fed’s speeches scheduled for today are
- President of the Richmond Fed Tom Barkin (podcast interview) at 10 a.m. EDT.
- Fed Governor Adriana Kugler and president of the Dallas Fed Laurie Logan at 1 p.m. EDT
- President of the Boston Fed Susan Collins at 11:40 a.m. EDT
- President of the St. Louis FedAlberto Musalem at 1:20 p.m. EDT
- President of the Chicago Fed East of Goolsbee at 2:00 p.m. EDT
See also: How to trade futures
Focus on actions:
- La-Z-Boy Incorporated LZB soared more than 10% in pre-market trading following the company’s earnings announcement, while Lennar Corp. LEN slipped more than 3% on profits.
- Patterson Enterprises, Inc. PDCO And Knowledge Base Home KBH are among the notable companies scheduled to report results on Tuesday.
- Broadcom, Inc. AVGO extended its rise and rose about 3% in pre-market trading.
- NextEra Energy, Inc. BORN fell more than 6% on the announcement of an offering of equity units by the company.
- Electric vehicle stocks could be in focus after Fisker, Inc. FSRN filed for bankruptcy.
Global commodity, bond and equity markets:
Crude oil futures retreated slightly after Monday’s more than 2% rally and gold futures extended their declines. The benchmark 10-year U.S. Treasury yield rose 1.3 basis points to 4.29%.
Bitcoin BTC/USD saw little change around the $65.5k level.
Among stock markets, Asian stocks closed higher, led by Australian and Taiwanese markets. Australia’s major averages rallied after the country’s central bank opted to keep rates unchanged, in line with expectations. Governor of the Reserve Bank of Australia Michele Bullock, however, made hawkish comments at the subsequent press conference/
European stocks firmed in early trading as traders across the region digested May inflation data, which was in line with preliminary estimates released in May. Monthly inflation in the euro zone stood at 0.2% and the annual rate increased by two-tenths of a point to 2.6%.
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