US stock futures saw a rise on Monday as investors sought new catalysts to guide market sentiment in the second half of 2024. The first half concluded on a positive note, with the S&P 500 and Nasdaq Composite surging 14.5% and 18.1% respectively, while the Dow Jones gained 3.8%. This rally was driven by strong investor interest in artificial intelligence (AI) stocks, exemplified by robust performances from companies like Nvidia.

The technology sector buoyed market optimism, supported by expectations of Federal Reserve interest rate cuts aimed at stimulating economic growth. However, as June drew to a close, traders exhibited caution amidst concerns that price-to-earnings (PE) multiples had stretched to elevated levels, prompting market volatility.

Friday's trading session reflected this cautious sentiment, with the Dow Jones slipping 0.12%, the S&P 500 declining 0.41%, and the Nasdaq Composite tumbling 0.71%. The retreat was notably led by significant declines in mega-cap tech stocks such as Apple (-1.6%), Amazon (-2.3%), and Microsoft (-1.3%). Nike also faced a substantial decline of 20% following a disappointing forecast update.

Looking ahead, investors are turning their attention to upcoming US manufacturing Purchasing Managers' Index (PMI) data, scheduled for release on Monday. This data is anticipated to offer valuable insights into the health of the US economy and potential implications for monetary policy decisions by the Federal Reserve.

The US stock market continues to navigate a dynamic landscape shaped by economic indicators, tech sector dynamics, and policy expectations. As investors assess future market trends and investment opportunities, the search for sustainable growth catalysts in the second half of 2024 remains paramount.

In summary, the rise in US stock futures underscores ongoing investor optimism tempered by cautious market sentiment. This analysis provides a comprehensive overview of the factors driving equity markets and influencing investment strategies as the year progresses.

Also Read : Indian Stock Market Soars on Positive Global Cues and Gains in Financial and IT Sectors

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