Tech Stocks Teeter as Retail Sales Disappoint, S&P 500 Nears Record


Last updated: June 19, 2024

2024-06-18_stock_market_today_s&p_500US stocks flirted with record highs, hitting pause amid the release of May’s retail sales data.

The S&P 500 held steady after clinching its 30th record close of 2024, while the Dow Jones hovered around the flatline. The Nasdaq Composite dipped 0.2% by mid-morning, trying to extend its six-day record streak.

Tech stocks continue to spearhead an AI-fueled rally that investors can’t ignore.

The excitement has prompted Wall Street banks to elevate their year-end S&P targets, with strategists claiming the AI boom is just beginning.

However, this exuberance faces a reality check with the latest retail business sales figures. Government data revealed a mere 0.1% rise in May retail sales, falling short of economist expectations.

April’s numbers were also revised downwards, signaling potential consumer stress amid high interest rates and persistent inflation.

Adding to the uncertainty, several Federal Reserve officials are set to speak, possibly hinting at future interest rate moves.

Despite clear indications from last week’s rate decision that only one rate cut is expected in 2024, over 60% of investors anticipate two cuts by year-end, as per the CME FedWatch tool.

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Co-Founder & Chief Editor
Jon Morgan, MBA, LLM, has over ten years of experience growing startups and currently serves as CEO and Editor-in-Chief of Venture Smarter. Educated at UC Davis and Harvard, he offers deeply informed guidance. Beyond work, he enjoys spending time with family, his poodle Sophie, and learning Spanish.
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LJ Viveros has 40 years of experience in founding and scaling businesses, including a significant sale to Logitech. He has led Market Solutions LLC since 1999, focusing on strategic transitions for global brands. A graduate of Saint Mary’s College in Communications, LJ is also a distinguished Matsushita Executive alumnus.
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