Stock futures remained steady on Sunday evening in anticipation of the first trading day in June.
Futures for the Dow Jones Industrial Average inched up 25 points, or less than 0.1%. S&P 500 futures remained unchanged, while Nasdaq 100 futures dipped by 0.1%.
Wall Street concluded a robust May, with all three major indices marking their sixth positive month in seven. The Nasdaq Composite saw a 6.9% increase, its best monthly performance since November 2023.
Despite this strong performance, the rally appeared to lose momentum towards the end of the month. All three indices ended May more than 1% below their record highs, even as the Dow added over 500 points on Friday. The Nasdaq experienced a 1.1% decline last week, driven by a downturn in chip stocks, including Nvidia.
“Investor expectations are high, particularly for growth and tech companies. So companies that are missing earnings or providing lackluster forward guidance are being punished,” said Dylan Kremer, chief investment officer at Certuity.
Growth stocks are also sensitive to interest rate movements, which will be a critical focus for investors ahead of the Federal Reserve meeting later this month. The first week of June is packed with economic updates, including manufacturing data on Monday and a key jobs report on Friday.
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