US 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.
You May Also Like: Nvidia’s Meteoric Rise: Analyst Projects $5 Trillion Valuation