Wall Street On Track To Resume Meteoric Climb, Nvidia Builds On Gains: Analyst Says 'Now Until Later In The Month Is…Seasonally Worst Times'

U.S. stocks will likely carry over from where they left off as the market reopens after the Juneteenth holiday on Thursday. The major index futures were all uniformly higher, underpinned by the continued buoyancy in the tech space. The sector’s accelerated runup, though, has caused concerns among certain quarters. Analysts have begun calling for moderation in sentiment toward the space once the Federal Reserve confirms rate cuts for the year.

Traders may also keep an eye on some key Main Street catalysts such as the jobless claims and housing starts data and the results of a regional manufacturing survey.

Futures	Performance (+/-)
Nasdaq 100	+0.68%
S&P 500	+0.42%
Dow	+0.10%
R2K	+0.31%

Wall Street went about a listless ride on Tuesday, as traders digested a slew of catalysts, including weak retail sales, stronger-than-expected industrial production growth, Fed speeches and the Congressional Budgetary Office’s 27% upward adjustment to budget deficit estimate for the fiscal year.

The major averages moved roughly sideways in a broad range before closing higher for the day. The Nasdaq Composite hit a record high on a closing basis but not on an intraday basis, and the S&P 500 Index clocked both intraday and closing highs. The 30-stock Dow Jones Industrial Average, which is still trading off its record highs, rose for a second straight session.

The most important development was Nvidia Corp. NVDA rising in ranks to become the most-valued global corporation.

Index	Performance (+/-)	Value
Nasdaq Composite	-0.03%	17,862.23
S&P 500 Index	+0.25%	5,487.03
Dow Industrials	+0.15%	38,834.86
Russell 2000	+0.16%	2,025.23

Insights From Analysts:

Comerica Chief Investment Officer John Lynch said in a recent note to clients that with the Fed scaling back its rate cut projections for the year, the focus now shifts to fundamentals. “While election-related headlines may grab investors' attention this summer, we will be focusing on fundamentals including inflation, earnings and interest rates when positioning our clients' diversified portfolios,” the strategist said.

Meanwhile, Carson Group Chief Market Strategist Ryan Detrick flagged potential weakness in the second half of June. Sharing a chart showing historical performance, he said June isn’t historically a strong month but this time around the market was atypically strong, in line with his expectations.

“Still, be aware that from now until later in the month is one of the seasonally worst times of the year,” he added.

June usually isn't very strong for stocks (not working this year, as we expected).

Still, be aware that from now until later in the month is one of the seasonally worst times of the year. pic.twitter.com/5cjRyjwfar

— Ryan Detrick, CMT (@RyanDetrick) June 18, 2024

• The Labor Department is due to release its weekly jobless claims report at 8:30 a.m. EDT. Economists, on average, expect the number of individuals claiming unemployment benefits to come in at 235,000 for the week ended June 15, down from 242,000 in the previous week.
• The Commerce Department will release its first-quarter current account data at 8:30 a.m. EDT. The consensus calls for a widening of the current account deficit from $194.8 billion in the fourth quarter to $207.4 billion in the first quarter.
• The Commerce Department is also scheduled to release its housing starts report at 8:30 a.m. EDT. Economists expect housing starts to come in at a seasonally adjusted annual rate of 1.38 million units for May, nearly flattish with last month’s 1.36 million units. Building permits, an indicator of future housing activity, may have edged up from 1.44 million units to 1.45 million units.
• Also on tap are the results of the Philadelphia Fed’s regional manufacturing survey. The diffusion index of manufacturing activity is expected to climb slightly from 4.5 in May to 5 in June.
• The Energy Information Administration will release the weekly petroleum status report at 11:30 a.m. EDT.
• The Treasury will auction four- and eight-week bills at 11:30 a.m. EDT and five-year TIPS at 1 p.m. EDT.

See also: Best Futures Trading Software

Stocks In Focus:

• Nvidia climbed nearly 2.70% in premarket trading amid the stock’s ongoing momentum.
• Super Micro Computer, Inc. SMCI rose over 3% after Elon Musk said the company will build half of the racks that are going into the supercomputer that his AI company x.AI is building.
• Accenture plc ACN, Commercial Metals Company CMC, Darden Restaurants, Inc. DRI, Jabil Inc. JBL, Kroger Co. KR and Winnebago Industries, Inc. WGO are among the notable companies reporting their quarterly results ahead of the market open.
• Smith & Wesson Brands, Inc. SWBI will release its quarterly report after the market close.

Commodities, Bonds And Global Equity Markets:

Crude oil futures firmed up above the $80-a-barrel level and gold futures also rose and traded above the $2,350-an-ounce mark. The 10-year benchmark U.S. treasury yield edged up 3.7 basis points to 4.254%.

Bitcoin BTC/USD rose about a percentage point.

Asian stocks closed on a mixed note, with Japan’s Nikkei rising modestly. The New Zealand, South Korean and Taiwanese markets advanced strongly, while China and Hong Kong retreated. The People’s Bank of China on Thursday left the one-year loan prime rate unchanged at 3.45%, and the five-year LPR at 3.95%. The decision came close on the heels of the release of some weak data points, but it was in line with expectations.

The major European markets traded in the green in early trading ahead of the Bank of England’s rate decision.

Read Next: ‘Hot Runner’ Nvidia To Hit Speed Bump In Second Half This Year? Here’s What A Market Strategist Says

Stocks Photo by Phongphan on Shutterstock