Last week, stocks closed higher with the S&P 500 and Nasdaq Composite ending with marginal gains for the week. Both indexes have experienced impressive gains this year, with the S&P 500 up by 15% and the Nasdaq up by 18%. The tech sector, particularly AI stocks, has been driving much of these gains, with Nvidia being a standout performer. However, Nvidia saw its first weekly loss since April, prompting investors to question if the AI rally is coming to a halt.
Economic data releases have been closely watched, with reports showing a decline in Existing Home Sales in May and slightly weaker than expected Retail Sales. The slowing economic data could influence the Federal Reserve’s decision on interest rates, with speculations of a potential rate cut in September. This week’s focus will be on the Personal Consumption Expenditures report, expected to show a 0.1% month-over-month price increase. Earnings reports from companies like FedEx, Micron, Walgreens, and Nike are also anticipated.
Apple, following their WWDC conference, warned of potential delays in launching their AI features in Europe due to regulatory concerns. European Union regulators have accused Apple of violating the Digital Markets Act, which could impact the company’s market position. Apple’s shares declined over 2% last week after an 8% gain the week prior. Additionally, Bitcoin has experienced a drop in value from over $72,000 to below $62,000 in premarket trading.
Investors are closely monitoring Nvidia’s performance this week to see if it can recover from the previous week’s losses. Volatility levels, although below their historical mean, have closed above their 9 and 21-day moving averages, signaling potential market fluctuations. The S&P 500 is undergoing a rebalancing with the addition of CrowdStrike, KKR, and Go Daddy while removing Robert Half, Comerica, and Illumina from the index. It is advised for investors to stick to their long-term investing plans and objectives amid market uncertainties.
This content by tastytrade, Inc. is for educational purposes only and should not be considered as trading or investment advice. It highlights the recent trends in the stock market, including the impact of economic data releases, earnings reports, regulatory concerns on Apple, and the performance of key players like Nvidia and Bitcoin. The article emphasizes the need for investors to stay focused on their long-term goals amidst market fluctuations and rebalancing activities.
