U.S. stock futures were hovering near record highs and were largely at a standstill in sluggish premarket trading following the release of May retail sales figures, the week’s highlight economic data.
S&P 500 (^GSPC) futures were in a range after the benchmark index recorded its 30th record close for 2024. Futures tracking the tech-heavy Nasdaq Composite Index (^IXIC) were also shaken as the index came close to surpassing its six-year record close. Dow Jones Industrial Average (^DJI) futures were also in a range.
Technology companies continue to drive an AI-driven stock rally, and as Yahoo Finance’s Miles Udland writes, investors can’t afford to miss it. The enthusiasm has led several Wall Street banks to further raise their year-end S&P targets. One strategist says the AI ​​revolution is still in its “early stages.”
That enthusiasm may be put to the test, or at least put on the back burner (perhaps temporarily), as attention turns to the health of the U.S. consumer. As Yahoo Finance’s Josh Schaefer reported, government data on Tuesday showed retail sales rose just 0.1%, below economists’ expectations, while April’s figure was revised downward to show a decline, which could be a sign that consumers are feeling even more nervous amid high interest rates and persistent inflation.
Also of interest will be a roster of chatty Fed officials who may offer further signals on interest rate moves. The message after last week’s rate decision and forecast update is clear for now: they expect one rate cut in 2024. Investors don’t seem to be taking this seriously yet, with over 60% still expecting two rate cuts by the end of the year, according to the CME FedWatch tool.
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