Stock futures advance as Wall Street seeks to complete a high-flying second quarter

U.S. stock futures traded mixed early Monday, marking the start of the final week of another successful quarter on Wall Street.

Futures tied to the benchmark S&P 500 (^GSPC) rose about 0.1%, while those on the tech-heavy Nasdaq Composite (^IXIC) hovered just below the line flat. Dow Jones Industrial Average (^DJI) futures rose 0.3%.

The shares are hoping to add some flavor to what has been a high-flying quarter so far. The S&P 500 is up about 4.5% this quarter and the Nasdaq has jumped about 8% thanks to an AI-driven rally.

This rally, however, showed signs of fatigue and ended last week. Nvidia (NVDA), so far Wall Street’s darling of 2024, lost ground after hitting new all-time highs late in the week. Those losses looked set to continue early Monday, with the stock down about 2% in premarket trading.

The macroeconomic front, as well as the renewed focus on the US political scene, could attract more attention this week. On this last point, US President Joe Biden and presumptive Republican candidate Donald Trump are expected to hold their first debate on Thursday evening. Yahoo Finance’s Ben Werschkul has a good idea of ​​what to watch from a U.S. economic perspective.

And then: inflation. The personal consumption expenditure (PCE) index will be released Friday morning. This index contains the “core” PCE measure, which is most closely monitored by the Federal Reserve.

Economists expect core PCE to have risen just 0.1% last month, which would be the slowest monthly rise since last November. Such a release would add to a string of recent positive data that could ease Fed policymakers’ concerns about rate cuts this year. Traders expect the Fed to begin cutting interest rates in September, according to the CME FedWatch tool.

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  • The question to start asking about Nvidia

    Is Nvidia (NVDA) simply too rich from a valuation perspective compared to other powerful tech titans?

    Consider this one.

    Nvidia shares are trading at more than 21 times forward sales, up from 12 times two months ago, the Creative Planning team points out. This is a hardware premium over Microsoft (MSFT) at 12x and Apple (AAPL) at 8x.

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