The U.S. market is on track to open Monday’s session on a firmer note after retreating from its record high in the final two sessions of last week. Potential clues on the near-term rate outlook from Federal Reserve officials’ speeches could potentially move stocks. The tech rally will likely continue to normalize, going by the trends in the premarket session. Analysts, however, are not unduly worried about the overbought level seen in tech stocks.

Commodities are modestly higher and bond yields are flat-lining. Global cues are mixed, with Asian stocks ending in a whimper, while the European markets were advancing.

Futures Performance (+/-)
Nasdaq 100 -0.10%
S&P 500 +0.07%
Dow +0.26%
R2K +0.23%

In premarket trading on Monday, the SPDR S&P 500 ETF Trust SPY gained 0.15% at $545.30 and the Invesco QQQ ETF QQQ was flat at $479.43, according to Benzinga Pro data.

Cues From Last Week:

U.S. stocks closed the holiday-shortened week ended June 21 higher but the gains were much more muted, potentially reflecting skepticism among traders as the market hovered in overbought territory. A strong run-up in tech stocks early in the week, led by Nvidia Corp. NVDA, and optimistic outlook issued by market strategists helped extend the bull run from the previous week that ended on June 15.

Growth worries and profit taking dragged the major indices lower in the back-end of the week, trimming the gains for the week. The Dow Jones Industrial Average outperformed as the 30-stock blue-chip average gained in all four sessions.

Index Week’s
Performance (+/-)
Nasdaq Composite +0.003% 17,689.36
S&P 500 Index +0.61% 5,464.62
Dow Industrials +1.45% 39,150.33
Russell 2000 +0.79% 2,022.03

Insights From Analysts:

“Big-cap AI-driven tech is the “here and now” move for portfolios,” said Bryan Perry, Senior Director with Navellier Private Client Group. The rally will likely accelerate further, the strategist suggested. “There is over $6 trillion dollars in dry powder sitting in high-yielding money markets that have yet to commit to this raging bull market in AI,” he said.

“It will come, and when it does, valuations will go parabolic, and it will be a perfect time to sell into that euphoric strength.”

The AI trade, the analyst said, seems woefully under-owned at the present.

Carson Group’s Ryan Detrick explained the reasons for the strong run for the S&P 500 Index with a chart. The outperformance is attributable primarily to rising earnings expectations, he said.

Upcoming Economic Data:

Friday’s personal income and spending report, which comprises a key inflation measure, considered the Fed’s favorite inflation gauge, two consumer confidence readings, the May durable goods orders report, the customary weekly jobless claims report and a slew of Fed speeches are among the key Main Street events of the week.

Traders may also focus on the final first-quarter GDP data and the National Association of Realtors’ pending home sales report for May.

On Monday, the following Fed officials are scheduled to speak:

  • Chicago Fed President Austan Goolsbee: TV appearance at 8:30 a.m. EDT
  • San Francisco Fed President Mary Daly: 2 p.m. EDT

The Treasury will auction three- and six-month bills at 11:30 a.m. EDT.

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Stocks In Focus:

  • Coinbase Global, Inc. COIN fell about 3.5% in premarket trading amid Bitcoin’s BTC/USD weakness.
  • Apple Inc. AAPL, which was little changed, could be in the spotlight after reports said the company has held discussions with Meta Platforms, Inc. META to integrate the latter’s artificial generative intelligence model into Apple Intelligence.
  • Trump Media & Technology Group Corp. DJT climbed nearly 7% after it revealed late-Friday that it expects proceeds of over $69.4 million from the exercise of warrants last Thursday and Friday.
  • ResMed Inc. RMD fell over 12% on a ratings downgrade.

Commodities, Bonds And Global Equity Markets:

Crude oil futures rebounded from Friday’s losses and traded up 0.45% to $81+ and gold futures advanced modestly but traded below the $2,350 level. The 10-year benchmark U.S. treasury yield was little changed at 4.259%.

Bitcoin fell nearly 45% over the last 24 hours and slipped below the $61.5K mark.

Most Asian markets retreated, led by China. Hong Kong ended little changed with a negative bias, while Japan, India, Indonesia and Singapore posted small gains. The negative performance by Wall Street on Friday weighed down on the regional markets, while traders also expressed apprehension about the uncertainty regarding the rate outlook for major global central banks.

The Japanese yen stabilized as authorities talked up the currency.

European stocks, however, were firmer at the start of trading.

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