Nasdaq 100, Dow Jones, S&P 500 News: Tech Stocks Fluctuate; Nvidia Hits Record High

S&P 500 Flat as Markets Await Retail Sales Data

The S&P 500 hovered near the flatline on Monday as investors looked to build on last week’s record-setting performance. Wall Street remains in a cautious stance ahead of the upcoming retail sales data set to be released on Tuesday. The Federal Reserve’s recent stance on inflation provided some positive sentiment, with disinflationary trends resuming after several months of unexpectedly high inflation readings.

Market Performance and Major Averages

Last week saw mixed performance among major indices. The Dow Jones Industrial Average experienced its third losing week out of four, while the S&P 500 and Nasdaq Composite achieved record highs. Both the S&P and Nasdaq have seen gains in seven of the last eight weeks, indicating strong market resilience despite some sector-specific volatility.

Stocks on the Move

Several major tech stocks experienced fluctuations. Amazon, Alphabet, and Meta Platforms saw slight declines, while Nvidia’s shares initially rose to a record high before pulling back. Nvidia, which has benefitted from strong enthusiasm around artificial intelligence, saw its shares peak with a 1.4% increase before moving down 0.6%.

Xponential Fitness experienced a significant rally, surging over 20% following the announcement of Mark King as its new CEO. The company’s shares rose more than 24% in morning trading, marking the stock’s second-best day since becoming public nearly three years ago. King, previously CEO of Taco Bell, takes over from interim CEO Brenda Morris.

Manufacturing Outlook in New York Area Surges

The Federal Reserve’s survey released on Monday indicated an improvement in manufacturing activity in the New York area. The Empire State Manufacturing Index improved to -6 for June, up from -15.6 in May, surpassing the Dow Jones consensus estimate of -10.5. The six-month outlook also surged to its best level since early 2022, with significant improvements in new orders and delivery times, and a decrease in price measures.

Market Forecast

Investors are keeping a close watch on retail sales data due on Tuesday, as well as home sales and housing starts data later in the week. While the fundamentals remain supportive, analysts caution that market corrections are likely along the way. Historically, even strong bull markets do not move in a straight line, typically experiencing two to three corrections annually. This week will test the sustainability of the recent rally, especially with markets closed on Wednesday for the Juneteenth holiday.