Nasdaq Leads Market Stagnation Ahead of Key June Economic Reports

As I sit on the cusp of the first trading day of June, the stock market is eerily calm. Dow Jones Industrial Average futures have inched forward by a mere 27 points, a paltry 0.1% increase. Meanwhile, S&P 500 and Nasdaq 100 futures remain stagnant. This tranquility follows a robust May performance, where all three major indices registered their sixth positive month in seven. The Nasdaq Composite saw a remarkable 6.9% surge, its most significant monthly growth since November 2023.

Despite these gains, the market's momentum began to wane towards the end of May. The Dow Jones, S&P 500, and Nasdaq Composite all closed the month more than 1% below their respective record highs. The Nasdaq Composite experienced a 1.1% decline during the last week, with tech stocks like Nvidia suffering setbacks.

Dylan Kremer, Certuity's chief investment officer, highlighted the market's shifting sentiment, stating, "Investor anticipation runs high, particularly for growth and tech companies. Consequently, companies that fail to meet earnings expectations or provide uninspiring forward guidance face harsh consequences."

The vulnerability of growth stocks to interest rate fluctuations is a significant concern for investors, as the Federal Reserve's upcoming meeting looms large. The initial week of June is slated to be a busy one, with a plethora of economic updates on the horizon, including manufacturing data on Monday and a crucial jobs report on Friday.

Perspective:
The comments section is filled with cautious optimism, as investors weigh the market's recent gains against the uncertainty of the Federal Reserve's upcoming meeting. Some advise diversifying portfolios to mitigate potential losses, while others suggest that growth stocks may still have room for growth despite the recent setbacks.

Data:

The Nasdaq Composite's 6.9% surge in May was its most significant monthly growth since November 2023.
The Dow Jones, S&P 500, and Nasdaq Composite all closed May more than 1% below their respective record highs.
The Federal Reserve's upcoming meeting is expected to have a significant impact on the market, particularly for growth and tech stocks.

Original Article: https://www.cnbc.com/2024/06/02/stock-market-today-live-updates.html