Nasdaq, S&P 500 To Stall Record Run? Here's What Futures Trading Suggests - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), SPDR S&P 500 (ARCA:SPY)

U.S. stock futures are pointing to a flattish start as the broader market is perched at a record high, propped up by the tech rally. The recent strong gains are likely leaving traders a lot cautious ahead of some market-moving catalysts scheduled for the week. Federal Reserve Chairman Jerome Powell heads to Capitol Hill this week to deliver his semi-annual monetary policy testimony. Bond yields are perking up amid the rate uncertainty.

Traders may also watch out for the Fed’s consumer credit report. M&A news could cushion any potential downward move during the session. Global cues are mixed, with Asia falling across the board, while European stocks have opened on a firm note. Commodities are moving to the downside.

Futures	Performance (+/-)
Nasdaq 100	-0.02%
S&P 500	-0.04%
Dow	-0.03%
R2K	+0.26%

In premarket trading on Monday, the SPDR S&P 500 ETF Trust SPY slipped 0.03% to $554.47 and the Invesco QQQ ETF QQQ edged down 0.-4% to $495.97, according to Benzinga Pro data.

Cues From Last Week:

Wall Street advanced strongly in the week ended July 5, thanks to Powell’s dovish remarks and a string of soft data points that raised hopes of rate cuts forthcoming this year. The Nasdaq Composite and the S&P 500 Index closed the week at fresh intraday and closing records.

Index	Weekly Performance (+/-)	Value
Nasdaq Composite	+3.50%	18,352.76
S&P 500 Index	+1.95%	5,567.19
Dow Industrials	+0.66%	39,375.87
Russell 2000	-1.02%	2,026.73

Insights From Analysts:

Further upside is likely this week if history is anything to go by. Carson Group’s Chief Market Strategist Ryan Detrick said in a post on X that the first half of July is historically one of the most bullish periods of the year for stocks.

Remember, the first half of July is historically one of the most bullish periods of the year for stocks. pic.twitter.com/Ol0SpwMFjK
— Ryan Detrick, CMT (@RyanDetrick) July 8, 2024

He also noted that the S&P 500 Index was higher in all four trading sessions so far in July. He added that the index hasn’t been up five in a row since 2007, with the most winning streak being a 10-session run in 1989.

Upcoming Economic Data:

Fed Chair Powell is set to deliver his semi-annual Congressional testimony in two days and his comments will be the most sought-after catalyst for the week. Traders also get to digest a double dose of inflation data, and a preliminary consumer sentiment reading for July.

A slew of Fed speeches are also on tap for the week.

Monday, the Fed will release its consumer credit report for May at 3 p.m. EDT. Economists, on average, expect the outstanding consumer credit for the month to rise by $8 billion, faster than the previous month’s $6.4 billion.

The Treasury will auction three- and six-month notes at 11:30 a.m. EDT.

Stocks In Focus:

Paramount Global PARA climbed over 3% in premarket trading after the company confirmed its acquisition by Skydance Media
Tesla, Inc. TSLA fell over 1% following an 8-session runup.
Boeing Co. BA rose modestly after the company confirmed that it has reached a guilty plea agreement with the Department of Justice over misleading federal regulators regarding the safety of its 737 Max.

Commodities, Bonds And Global Equity Markets:

Crude oil futures were seen extending their losses from Friday and gold futures also pulled back, while the benchmark 10-year Treasury note yield rose 3.1 points to 4.303%.

Bitcoin BTC/USD stemmed the slide and traded around the $57K mark.

Asian stocks fell across the board, with the Hong Kong and Chinese markets declining by the most amid fears that China’s trade war with Europe may escalate. Traders also remained wary ahead of China inflation data due on Wednesday. The Taiwanese market bucked the downtrend. The major European markets were higher in early trading following the surprise election win for the left wing in France.

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