The Ultimate Guide to Investing in the Record-Breaking Wall Street Rally with S&P 500 and Nasdaq Futures Soaring to New Heights
As the world's best investment manager and financial market journalist, I bring you the latest updates on the unprecedented rise of the S&P 500 and Nasdaq futures in a historic Wall Street rally. With Federal Reserve Chair Jerome Powell's remarks and crucial inflation prints on the horizon, investors are eagerly awaiting more direction this week.
Leading the charge in this rally are the heavily weighted stocks, with AI-chip favorite Nvidia climbing 1.1% in premarket trading. Other chip stocks, including Arm Holdings and Micron Technology, also saw gains, with Taiwan Semiconductor Manufacturing Co's U.S.-listed shares climbing 2% after beating revenue estimates for the second quarter.
The "Magnificent Seven" stocks, which include Meta Platforms, Apple, Alphabet, and Microsoft, were all trading higher, driving the market to new heights. Tesla also saw a modest increase after HSBC raised its price target on the EV maker's stock.
While the rally has been fueled by these top-performing stocks, some market watchers are questioning the sustainability of these gains and calling for greater diversification. The benchmark index closed at an all-time high for the fifth consecutive session, while the Nasdaq notched its sixth record closing high.
Federal Reserve Chair Jerome Powell's recent comments have raised hopes for an interest-rate cut in September, although he has refrained from committing to a timeline for rate cuts. As we await further developments from Powell's testimony to Congress, bets on a rate cut by September have increased to around 70%.
Looking ahead, investors will be closely watching U.S. inflation data this week, with the Consumer Price Index and Producer Price Index reports set to be released. Additionally, the second-quarter earnings season kicks off this week, providing a key test for high-flying megacaps to justify their valuations.
At 7:26 a.m. ET, S&P 500 futures were down 4 points, Nasdaq futures were up 8 points, and Dow futures were up 55.25 points.
In other news, Illumina jumped 3.7% on plans to acquire Fluent BioSciences, while Goodyear Tire & Rubber Company gained 2% on reports of a potential acquisition of its off-road tire business by Japan's Yokohama Rubber.
Stay tuned for more updates on the market's performance and key economic indicators as we navigate through these unprecedented times.