| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 38778.10 | 188.94 | 0.49% |
| S&P 500 | 5473.23 | 41.63 | 0.77% |
| Nasdaq | 17857.02 | 168.14 | 0.95% |
| VIX | 12.75 | 0.09 | 0.71% |
| Gold | 2334.90 | 5.90 | 0.25% |
| Oil | 80.46 | 0.13 | 0.16% |
US MARKET
Technology shares drove US stock indexes to new records. The S&P 500 gained 0.8%, the Nasdaq Composite rose 1%, and the Dow Jones increased by 0.5%. Treasury yields climbed, with the 10-year yield reaching 4.277%.
The S&P 500’s top sector was information technology, led by chip makers. Broadcom surged 5.4%, while Super Micro Computer and Micron Technology also outperformed.
This advance extended the hot streak for major indexes, supported by economic confidence and potential Fed interest-rate cuts. The S&P 500 is up 15% in 2024, with rare pullbacks and low volatility. Upcoming central-bank meetings and economic data could add excitement.
U.S. retail-sales data for May, expected to show a 0.2% increase, will be released Tuesday. Strong consumer spending has driven the economy and corporate profits. Any signs of weakening could prompt the Fed to cut rates sooner than expected, with a 65% chance of a rate cut by September.
Despite record highs, concerns persist. More stocks have been declining, with fewer S&P 500 companies trading above their 200-day moving average. Gains from Apple, Microsoft, and Nvidia have offset other weaknesses, with the IT sector up 7.9% in the past seven days.
“Breadth has weakened,” noted Tim Hayes of Ned Davis Research, indicating that the records aren’t confirmed by most sectors and stocks.
Australian shares are set to rise at the open, following gains in New York driven by tech stocks Tesla and Apple.
Futures suggest the S&P/ASX 200 Index will add 30 points or 0.4% to 7,744. This comes ahead of the Reserve Bank’s cash rate decision at 2:30 pm AEST.
While strategists like Ryan Detrick of Carson Group see the record closes in New York as positive for equities, not everyone agrees. Tim Hayes of Ned Davis Research warns that record highs in the S&P 500 and Nasdaq Composite are more about investor sentiment than market strength, noting that breadth has weakened.
Locally, investors will focus on the RBA interest rate decision and subsequent press conference. The central bank is widely expected to hold rates steady. National Australia Bank senior economist Taylor Nugent expects little change in the post-meeting statement or guidance from Governor Michele Bullock.
Stocks to watch include NexGen Energy, hosting an AGM, and Premier Investments, trading ex-dividend.