Traders work on the floor of the New York Stock Exchange.
Brendan McDiarmid | Reuters
Stock futures were slightly higher in overnight trading Sunday as Wall Street looked to the second half of 2024.
Futures Dow Jones Industrial Average Add 25 points, S&P 500 Futures It rose 0.15%. Nasdaq 100 Futures also rose 0.15%.
Wall Street ended the first half of the year strong, despite major stock indexes dropping, as excitement over artificial intelligence and stocks like Nvidia continued. S&P 500 14.5% increase, Nasdaq Composite Index It increased by 18.1%. Dow Jones Industrial Average A pullback in the second quarter led to a weaker performance, up 3.8%.
For the quarter, the S&P and Nasdaq rose 3.9% and 8.3%, respectively, while the Dow fell 1.7%. The Nasdaq recorded three consecutive positive quarters for the first time since ending 2021 with five consecutive positive quarters.
Some are concerned that price-to-earnings ratios have reached high levels, but others expect this tech-driven momentum to continue at least through the summer.
“We’re not seeing a lot of evidence that tech is slowing down,” King Lip, chief strategist at Baker Avenue Wealth Management, said Friday on CNBC’s “Closing Bell.” “If anything, I’d say it’s accelerating.”
He expects the sector to face resistance during seasonal weakness and profit-taking in September and October, as well as around the election, but sees valuations as reasonable.
“The reality is that these companies have been so well-managed through thick and thin that they’ve been able to grow their revenues quite a bit during this period of economic growth,” he said. “These companies have delivered.”
A shortened holiday trading week begins on Monday and markets are closed on Thursday for Independence Day. Investors will get a major clue about the state of the labor market when the June jobs report is released on Friday.
Earlier, the S&P PMI and ISM manufacturing indices for June, as well as construction spending for May, are due to be released on Monday.
