U.S. stocks are expected to open the week on a positive note, despite high valuations, particularly among mega-cap companies. Index futures were mostly higher in early trading, buoyed by reduced political uncertainty following a shooting incident at a campaign rally in Pennsylvania that boosted the odds of a victory for presumptive Republican candidate Donald Trump.
Traders will be keeping an eye on a regional manufacturing reading and a speech by Federal Reserve Chairman Jerome Powell. Earnings reports from key financial companies will also be of interest.
In premarket trading on Monday, the SPDR S&P 500 ETF Trust (SPY) rose 0.35% to $561.97, while the Invesco QQQ ETF (QQQ) rose 0.46% to $497.10.
Last week, Wall Street experienced volatility before ending higher. Small-cap stocks outperformed larger counterparts after Powell’s dovish comments and a tame June inflation report. The Nasdaq Composite and S&P 500 indices reached records before pulling back, while the Dow Jones Industrial Average and Russell 2,000 Index rose for three consecutive sessions.
Chief Market Strategist Ryan Detrick of Carson Group is optimistic about the rally continuing, noting historical trends that suggest bullish outcomes. Analysts are also optimistic about the market’s performance in the coming months.
Upcoming economic data includes manufacturing readings, the June retail sales report, and several Fed speeches, including one from Powell.
Stocks to watch include Trump Media & Technology Group Corp. (DJT), which soared over 50% on increased odds of a victory for former President Donald Trump. Crypto-linked stocks like Coinbase Global, Inc. (COIN) rallied, while solar stocks like Sunrun Inc. (RUN) and First Solar, Inc. (FSLR) fell sharply. Companies like Goldman Sachs Group, Inc. (GS) and BlackRock, Inc. (BLK) are set to announce quarterly results.
In commodities, crude oil futures fell, gold futures edged down, and the 10-year Treasury note yield rose. Bitcoin (BTC/USD) advanced, and global equity markets reacted to news of the Trump shooting incident.
Asian markets responded mixed, with Hong Kong falling sharply and Chinese markets recovering. Economic data from China showed slower-than-expected growth in GDP and retail sales. The Japanese market was closed for a public holiday, while European stocks started on a negative note.