Nasdaq Index, Dow Jones, S&P 500 News: Futures Surge at Start of 2024’s Second Half

Stock Futures Rise as Second Half of 2024 Begins

Stock futures advanced on Monday, marking a positive start to the second half of 2024. Wall Street’s major indices had recently ended a losing session, but strong performances earlier in the year, driven by enthusiasm for artificial intelligence (AI) and stocks like Nvidia, buoyed the S&P 500 to a 14.5% gain and the Nasdaq Composite to an 18.1% rally. Conversely, the Dow Jones Industrial Average underperformed, gaining only 3.8% due to a second-quarter pullback.

At 11:55 GMT, Dow futures are trading 39562.00, up 93.00 or +0.24%. S&P 500 Index futures are at 5534.75, up 13.25 or +0.24% and Nasdaq futures are trading 19973.75, up 46.50 or +0.23%.

Technology Sector Momentum

The tech sector’s momentum appears robust, with continued support from investor enthusiasm for AI. Despite some concerns about valuation levels, the sector’s overall growth prospects remain strong. The tech-heavy Nasdaq Composite notched its third positive quarter in a row, achieving its first three-quarter streak since 2021.

Key Economic Data Ahead

This week kicks off a holiday-shortened trading period, with markets closed on Thursday for Independence Day. Investors are closely watching the June jobs report due on Friday for insights into the labor market’s health. Prior to this, Monday will see the release of the S&P PMI manufacturing and ISM manufacturing data for June, along with May construction spending figures.

Corporate Developments

Boeing announced on Monday that it will reacquire fuselage maker Spirit AeroSystems in an all-stock deal valued at $4.7 billion. Including Spirit’s debt, the transaction is worth $8.3 billion. Boeing aims to improve safety and quality control amid increased scrutiny and production challenges. In related news, the Department of Justice plans to seek a guilty plea from Boeing for misleading regulators over two fatal 737 Max crashes.

Disney and Pixar’s “Inside Out 2” has become the highest-grossing film of 2024, surpassing $1 billion at the global box office. This milestone marks a significant achievement for Pixar, highlighting the continued importance of family audiences in cinema.

Meta Faces EU Regulatory Challenges

Meta, Facebook’s parent company, has been accused by EU regulators of not complying with the Digital Markets Act (DMA) with its ad-supported social networking service. The European Commission argues that Meta’s “pay or consent” model does not offer users a less personalized but equivalent service and fails to allow free consent for personal data use. Meta could face fines up to 20% of its global annual revenue if found in breach.

Market Reactions

Chewy shares surged in premarket trading after an SEC filing revealed that meme stock trader “Roaring Kitty” (Keith Gill) acquired a 6.6% stake in the company, making him the third-largest shareholder. This news has driven significant interest in Chewy, with its stock up over 20% before the bell.

Market Forecast

Looking ahead, the market shows a cautiously optimistic outlook with continued support from the technology sector and notable corporate developments. Traders should watch for economic data releases and corporate performance to gauge short-term market direction.

Technical Analysis

The Nasdaq 100 E-mini Futures chart shows a steady uptrend, with significant support at 18,501 and recent high at 20,371. The index is currently trading above the 50-day and 200-day moving averages, indicating bullish momentum.

A trade through 20371.00 will signal a resumption of the uptrend, while a failure to hold 19726.00 shifts momentum lower.