S&P 500 and Nasdaq near records ahead of retail sales data

U.S. stock futures held near their record highs, marking a pause in muted premarket trading ahead of the highlight of the week's economic data: the release of May retail sales figures.

S&P 500 futures (^GSPC) hovered around the flat line after the benchmark index hit its 30th record close in 2024. Futures linked to the Nasdaq Composite (^IXIC) rose by 0.2% as the index with a strong technological component sought to build on a sixth consecutive increase. close of registration. Dow Jones Industrial Average (^DJI) futures were down 0.1%.

Tech continues to lead an AI-driven rally that, as Yahoo Finance's Myles Udland writes, investors simply can't afford to miss. This enthusiasm is leading several Wall Street banks to continue raising their year-end S&P targets, with one strategist saying the AI ​​revolution is still in its “early stages.”

That enthusiasm could be (perhaps briefly) put to the test – or at least put on the back burner – as consideration of the health of the American consumer takes center stage. Retail sales remained stable in April and investors will be wondering if this slowdown continues. Economists expect an overall gain of 0.3% for May sales.

The focus will also be on a list of talkative Fed officials who could give more signals about where interest rates are moving. So far, the message after last week's rate decision and forecast update has been clear: expect a rate cut in 2024. Investors don't seem to have taken that to heart yet , with more than 60% of them still expecting two declines by the end of the year, according to the CME FedWatch tool.