Traders work on the floor at the New York Stock Exchange.
Brendan Mcdermid | Reuters
Stock futures rose in overnight trading Sunday as Wall Street looked ahead to the second half of 2024.
Futures tied to the Dow Jones Industrial Average added 55 points, or 0.1%, while S&P 500 futures gained 0.2%. Nasdaq-100 futures also edged up 0.2%.
Wall Street is coming off a losing session for the major averages, of a strong finish to the first half of the trading year. Continued excitement surrounding artificial intelligence and stocks such as Nvidia led the S&P 500 to a 14.5% gain, while the Nasdaq Composite rallied 18.1%. The Dow Jones Industrial Average underperformed due to a pullback in the second quarter, adding 3.8%.
For the quarter, the S&P and Nasdaq added 3.9% and 8.3%, respectively, while the Dow lost 1.7%. The Nasdaq notched its third positive quarter in a row for the first time since a five-quarter streak ending in 2021.
Some expect this technology-driven momentum to persist at least through the summer, despite some fears that multiples have hit heightened levels.
“We don’t see a lot of evidence of tech slowing, King Lip, chief strategist at BakerAvenue Wealth Management, told CNBC’s “Closing Bell” on Friday. “If anything, you could argue that it’s accelerating.”
He expects the sector to hit some resistance during a period of seasonal weakness and profit-taking in September and October, and around the election, but views valuations as warranted.
“The reality is that these companies have been so well managed through thick and thin, that during times like this when the economy is growing, they’re able to grow their earnings quite significantly,” he said. “These companies have have delivered.”
Monday kicks off a holiday-shortened trading week, with the market closed Thursday for Fourth of July. Investors will get a big clue into the state of the labor market Friday with the June jobs report.
Beforehand, S&P PMI manufacturing and ISM manufacturing data for June are due out Monday, along with may construction spending.
