U.S. stocks hovered near record highs on Monday, as a holiday-shortened trading week began with Wall Street speculating on the sustainability of the bull rally that has surged throughout 2024.
The tech-heavy Nasdaq Composite (^IXIC) rose by 0.2%, marking its fifth consecutive record close in Friday’s session and achieving what some call a “perfect” week. Meanwhile, the S&P 500 (^GSPC) also gained 0.2%, and the Dow Jones Industrial Average (^DJI) managed to erase earlier losses, ending the day flat.
The continued upward momentum in stocks, driven largely by a rally in the tech sector, has led Wall Street analysts to revise their year-end forecasts for the S&P 500. Evercore ISI has raised its year-end price target to 6,000, while Goldman Sachs has increased its target to 5,600. Last week, the S&P 500 breached the 5,400 mark for the first time ever.
With the recent release of inflation data and the Federal Reserve’s meeting now in the rearview mirror, this week’s trading is expected to feature fewer significant catalysts. The key economic event to watch will be Wednesday’s retail sales report, which will offer insights into the health of the U.S. consumer.
Federal Reserve officials are likely to be more vocal following last week’s meeting. On Sunday, Minneapolis Fed President Neel Kashkari suggested that a December rate cut might be the Fed’s sole action this year. Investors are currently pricing in a roughly two-thirds chance that the central bank will start cutting rates by September, according to the CME FedWatch tool. Fed appearances scheduled for Monday include speeches from New York Fed President John Williams and Philadelphia Fed President Patrick Harker.
