Traders work on the trading floor of the New York Stock Exchange.
Brendan Mcdermid | Reuters
Stock futures rose in overnight trading Sunday as Wall Street looked ahead to the second half of 2024.
Futures linked to Dow Jones Industrial Average added 55 points, or 0.1%, while S&P 500 Futures gained 0.2%. Nasdaq 100 Futures also rose 0.2%.
Wall Street is coming off a session of losses for the major stock indices, after a solid end to the first half of the stock market year. The continued enthusiasm around artificial intelligence and stocks such as Nvidia led to the S&P 500 Index with a gain of 14.5%, while the Nasdaq Composite Index rebounded by 18.1%. Dow Jones Industrial Average underperformed due to a pullback in the second quarter, adding 3.8%.
For the quarter, the S&P and Nasdaq added 3.9% and 8.3%, respectively, while the Dow Jones lost 1.7%. The Nasdaq posted its third consecutive positive quarter for the first time since a five-quarter streak that ended in 2021.
Some expect this tech-driven momentum to persist at least through the summer, despite some fears that multiples have reached elevated levels.
"We don't see much evidence of a tech slowdown," King Lip, chief strategist at BakerAvenue Wealth Management, told CNBC's "Closing Bell" on Friday. "If anything, you could argue it's accelerating."
He expects the sector to encounter some resistance during a period of seasonal weakness and profit-taking in September and October, and around the election, but believes the valuations are justified.
"The reality is that these companies have been so well managed through thick and thin that, in times like this, when the economy is growing, they have been able to increase their profits significantly," he said. "These companies have delivered."
Monday kicks off a holiday-shortened trading week, with the market closed on Thursday for the Fourth of July. Investors will get a big clue about the state of the labor market on Friday with the June jobs report.
Earlier on Monday, S&P manufacturing PMI and ISM manufacturing data for June will be released, along with construction spending for May.
