#StockMarket2024 #SP500 #InvestmentTrends
Today's Stock Market Update: A Strong First Half and a Promising Second Half Ahead
The stock market, as measured by the S&P 500, has booked an impressive 15% return at the halfway mark this year, marking one of the top-seven best starts in the last 35 years. This strong performance has been accompanied by the S&P 500 setting more than 30 new record highs year-to-date. This remarkable start is not unprecedented, as in the 11 years where stocks were up 10% or more at the end of June, the average full-year return went on to be 29%.
A Strong First Half
The S&P 500 has risen more than 15% in the first half of 2024, a significant milestone that underscores the market's resilience. This performance is not a guarantee of future results, but it does indicate a robust start to the year. The Dow Jones Industrial Average has also seen a 3.8% year-to-date return, while the NASDAQ has surged 18.1%.
Second-Half Outlook
Looking ahead, the market has a lot of fundamental support. The Federal Reserve's easing of monetary policy and the expected rise in corporate profits are expected to contribute to additional gains in the second half. However, it is crucial to temper expectations, as some of the gains have already been captured in the first half. Investors should be optimistic about the rest of 2024 but expect more moderate gains.
Weekly Market Stats
- $Dow Jones Industrial Average: 39,119, down 0.1% for the week and up 3.8% year-to-date.
- $S&P 500 Index: 5,460, down 0.1% for the week and up 14.5% year-to-date.
- $NASDAQ: 17,733, up 0.2% for the week and up 18.1% year-to-date.
- $MSCI EAFE: 2,314, up 0.3% for the week and up 3.5% year-to-date.
- 10-yr Treasury Yield: 4.38%, up 0.1% for the week and up 0.5% year-to-date.
- Oil ($/bbl): $81.52, up 1.0% for the week and up 13.8% year-to-date.
- Bonds: $97.07, down 0.7% for the week and down 0.2% year-to-date.
Key Economic Releases
This week, investors will be closely watching the ISM manufacturing PMI and the nonfarm payrolls report for June. These releases will provide valuable insights into the state of the economy and help shape expectations for the second half of the year.
Notable Stock Movements
- $Nvidia: Shares have seen a surge following Elon Musk's announcement that Super Micro and Dell are supplying xAI, highlighting the growing importance of AI in various industries.
- $Trump Media: Experienced a 15% plunge as the DJT stock sell-off deepens, underscoring the intersection of politics and finance.
- $Accenture: Notable stock movements include Accenture, which has seen significant activity in the premarket hours.
- $La-Z-Boy: Also saw notable stock movements in the premarket hours.
Market Sentiment
Investors are currently the most bullish since November 2021, according to a widely followed survey. This sentiment is reflected in the market's performance, with the S&P 500 experiencing a significant rally in recent days.
The Role of Brokers
Brokers act as intermediaries between investors and the securities markets, buying and selling stocks on their behalf. They can be full-service or discount brokers, offering various levels of investment advice and services. Online brokerage firms have also gained popularity, offering user-friendly platforms for investors to trade securities electronically at lower costs and more convenience.
The Importance of the Stock Market
The stock market plays several essential roles in the economy, including corporate governance, economic indicator, investment opportunities, liquidity, raising capital, and resource allocation. It has evolved from a minor role in the economy to a central component, driven by financialization and the increasing dominance of financial markets and institutions.
Conclusion
As the market continues to evolve, investors must stay informed and adapt to the ever-changing landscape. By keeping a close eye on market trends, analyst calls, and company performances, investors can position themselves to capitalize on the market's potential. Whether it's the tech sector, emerging market opportunities, or the political sphere, the investment landscape is constantly evolving, and investors must be prepared to adapt to the changing tides.
Leave a Reply