The US stock market continued its record-breaking run this Monday, June 17th, with all major indices climbing higher in a holiday-shortened trading week. This comes after a strong week that saw the S&P 500 and Nasdaq Composite close at all-time highs on Friday.
Indice Performance:
- S&P 500 (^GSPC): Up 0.56% at 5,461.95, reaching a new intraday high.
- Nasdaq Composite (^IXIC): Up slightly more than the S&P 500, also reaching a new intraday high.
- Dow Jones Industrial Average (^DJI): Initially dipped lower but recovered to trade slightly positive.
The Tech Sector Leads the Charge
Technology stocks continued to be a driving force, with shares of Apple (AAPL), Tesla (TSLA), and chipmaker Broadcom (AVGO) leading the gains. This incline aligns with the trend of a tech-fueled rally that has caused Wall Street analysts to revise their year-end targets for the S&P 500 upwards.
Oil Prices Rise on Summer Demand
Oil futures rose roughly 1%, building on last week's gains, as the market expects increased demand for transportation fuel and cooling during the summer months. This comes despite OPEC+ announcing an extension of production cuts with some voluntary reductions starting to phase out later in the year.
Fed Debate Continues
Although the Federal Reserve meeting is behind us, policymakers will likely continue their discussions on interest rates this week. Minneapolis Fed president Neel Kashkari hinted at a possible December rate cut, while investors remain divided on the timing of the first-rate decrease, with some expecting it as early as September.
Looking Ahead…
With a shortened week due to the upcoming holiday, fewer economic data releases are expected to impact the market. However, Wednesday's retail sales report will be watched closely for insights into consumer spending and the overall health of the US economy. Investors will also be paying close attention to any further comments from Fed officials regarding potential interest rate adjustments.
Overall, the market continues its positive momentum with technology leading the charge. While some economic uncertainty remains, investors appear optimistic about the outlook for the rest of the year.
