Stock futures were relatively stable on Sunday evening as the market prepared for a holiday-shortened week. The Dow Jones Industrial Average futures stayed flat, while S&P 500 futures and Nasdaq 100 futures saw slight increases. Last week saw mixed results, with the Dow and S&P posting slight declines, while the Nasdaq closed at a record high for the fifth consecutive session. The recent tech rally has buoyed the S&P and Nasdaq, while the Dow has struggled as economic growth slows.
Investors are now questioning whether the tech rally can continue, as concerns about the market outlook begin to surface. NB Private’s Shannon Saccocia highlighted two key themes that investors are focusing on this year: the continued growth of artificial intelligence and the resurgence of manufacturing and reshoring. Recent weaker economic data is causing some to question whether the resurgence in manufacturing is slower than anticipated. As a result, the market outlook remains uncertain.
This week will be a shortened trading week, with markets closed on Wednesday for the Juneteenth holiday. Investors will be keeping a close eye on key economic data releases, including May retail sales data on Tuesday, as well as home sales and housing starts data later in the week. Quarterly earnings reports from companies such as Lennar, Kroger, Darden Restaurants, and CarMax will also be closely watched as investors look for further insights into the state of the economy and corporate performance.
The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have all seen varying levels of performance in recent weeks, with the Nasdaq outperforming the other two indices. The Dow has experienced its third losing week in four, while the S&P and Nasdaq have posted gains in seven of the last eight weeks. The recent tech rally has been the driving force behind the success of the S&P and Nasdaq, while the Dow has struggled to keep pace.
As uncertainty looms over the market outlook, investors are likely to remain cautious and closely monitor economic data and corporate earnings reports for any signs of weakness or strength. The AI theme and resurgence of manufacturing are shaping investor sentiment, with concerns about the pace of growth adding to the uncertainty. This week’s trading is expected to be influenced by a combination of economic data releases, earnings reports, and overall market sentiment.
Overall, the market remains in a state of flux as investors weigh the potential for continued tech rally against concerns about slowing economic growth. The shortened trading week and key economic data releases will be closely watched for any signs of further clarity on the market outlook. As the tech sector continues to drive gains in the S&P and Nasdaq, investors will be looking for additional insight into the performance of key sectors such as retail, housing, and manufacturing to gauge the broader economic landscape.
