The S&P 500 and the Nasdaq closed the trading day on July 9, 2024 setting new all-time highs. The S&P closed at 5576.98 and the Nasdaq at 18,429.29, setting new highs in 2024 at 35 times and 25 times, respectively. The S&P has risen 16.9% YTD while the Nasdaq has climbed 22.7%.
Investors are monitoring comments from the Fed today and on Wednesday in front of the U.S. Senate and House committees. They’re also awaiting the June CPI report on Thursday, followed by the Producer Price Index data on Friday. Any weakness in the economy may lead the Federal Reserve to enact their first interest rate cut in 2024. Unemployment rose slightly last week, from 4% to 4.1%, while May’s inflation report showed a slight uptick of .2% (excluding food and energy). The all-items index rose 3.3% for the 12 months ending in May.
The stellar performance by both indices has been driven primarily by the top 20 companies in each, which is not indicative of a truly “healthy” market. The Dow stocks have gained a paltry 4.25% while the small cap stocks, represented by the Russell 2000 index, is barely positive at .12%. YTD, 10 of the S&P 500 sectors are positive, with only Real Estate falling by 4.14%. Communication Service has risen 20% while the Tech sector is up 21.72%. Financials is the only other sector with a double-digit return, clocking in at 11%.