U.S. stocks continued their upward trend on Monday as investors looked forward to insights on interest rates from Federal Reserve officials and key labor market data. At 09:35 ET (13:35 GMT):
- Dow Jones Industrial Average: Rose 240 points, or 0.6%
- S&P 500: Rose 14 points, or 0.3%
- NASDAQ Composite: Rose 22 points, or 0.1%
These gains add to the positive momentum from the previous quarter, starting the new week—shortened by Thursday’s Independence Day holiday—on a strong note.
Quarterly Performance Highlights
In the second quarter:
- S&P 500: Increased by 3.9%
- NASDAQ Composite: Increased by 8.3%
- Dow Jones Industrial Average: Decreased by 1.7%
The Nasdaq marked its third consecutive positive quarter, a streak not seen since a five-quarter run ending in 2021, driven by major tech stocks and enthusiasm for artificial intelligence.
Key Focus: Payrolls and Fed Commentary
Upcoming Nonfarm Payrolls Data
The spotlight this week is on Friday’s release of the June nonfarm payrolls data, which will provide more insight into the labor market. The labor market’s resilience remains a critical factor for the Fed in its rate-cutting decisions.
Inflation and Fed Minutes
The PCE price index, an essential inflation gauge for the Fed, indicated last week that inflation is slowing gradually. This adds uncertainty about when the U.S. central bank will begin cutting interest rates. Additionally, a report on Tuesday is expected to show a decline in job openings for May.
On Wednesday, the release of the Fed’s June meeting minutes will offer insights into the central bank’s economic outlook and the factors influencing its monetary policy.
Fed Officials’ Speeches
Several Fed officials are scheduled to speak this week, including Chairman Jerome Powell, who will appear at the European Central Bank’s annual forum in Portugal on Tuesday.
Corporate News
Boeing’s Acquisition
- Boeing (NYSE): Stock rose 2.2% after agreeing to buy Spirit Aerosystems (NYSE) for $4.7 billion, a deal complicated by Spirit’s contracts with Airbus (EPA). Spirit Aerosystems’ stock increased by 3.5%.
Other Notable Stock Movements
- Nvidia (NASDAQ): Stock fell 1.2%, consolidating after nearly 150% gains this year. Morgan Stanley remains optimistic, raising its price target, citing Nvidia as “the most compelling narrative in the AI semis space.”
- Chewy (NYSE): Stock rose 7.6% after Keith Gill, known as “Roaring Kitty,” disclosed a 6.6% stake in the pet products retailer.
- GameStop (NYSE): Stock fell 6.9% after Gill was accused of securities fraud in a class-action lawsuit related to the video game retailer.
Crude Oil Prices Supported by Chinese Manufacturing Data
Oil Price Increase
Crude prices edged higher on Monday, supported by a private survey showing stronger-than-expected growth in Chinese manufacturing activity for June. By 09:35 ET:
- U.S. Crude Futures (WTI): Rose 0.8% to $82.19 per barrel
- Brent Contract: Climbed 0.9% to $85.74 per barrel
Chinese Manufacturing Data
The Caixin Manufacturing PMI increased to 51.8 in June, surpassing expectations of 51.5 and May’s reading of 51.7. This contrasts with government data indicating a contraction in China’s manufacturing sector for the second consecutive month in June.
China, being the world’s largest crude importer, shows signs of recovery in its manufacturing sector, indicating potential increased demand for crude in the second half of the year.
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