Wall Street set to open mixed as focus turns to data, Fed comments
What specific economic data are investors looking forward to this week that could influence Wall Street's direction?
Investors are looking forward to several key economic data releases this week that could influence Wall Street's direction. These include:
- May retail sales data on Tuesday
- Industrial production figures
- Housing starts
- S&P flash PMI data
These data points will provide insights into the health of the U.S. economy and could impact investors' decisions regarding monetary policy and market outlook. Additionally, comments from Federal Reserve officials, such as the New York Fed's John Williams, Philadelphia Fed's Patrick Harker, and Fed Board Governor Lisa Cook, will also be closely watched for any indications on the future direction of interest rates and economic policy.
What concerns do some investors have regarding the sustainability of the current equity rally on Wall Street?
Some investors are concerned about the sustainability of the current equity rally on Wall Street because it has been driven mostly by a select few megacap growth and technology stocks. This concentration raises concerns that a pullback could be even deeper if these stocks lose momentum or face a downturn. Additionally, recent hawkish projections from the Federal Reserve have contrasted with several data releases pointing to growing weakness in the economy, creating uncertainty around the rally's longevity.
Which technology and megacap stocks contributed to the Nasdaq’s recent gains, and by what percentages did they increase in premarket trading?
The Nasdaq's recent gains were driven by technology and megacap stocks, with notable contributions from Apple and Nvidia. In premarket trading, Apple rose by 0.6% and Nvidia increased by 1.1%. Additionally, some chip stocks also experienced gains, with Broadcom and U.S.-listed shares of Taiwan Semiconductor Manufacturing Co each up more than 3%. Arm Holdings and Micron Technology also gained over 2% each after price-target raises by brokerages.