Stock Market Update: S&P 500 Hits Fresh Record as Wall Street Looks to Build on Gains

The New York Stock Exchange saw a surge in trading activity on Monday as the S&P 500 closed at a fresh record high, signaling optimism on Wall Street. The broad index added 0.77% to finish at 5,473.23, while the Nasdaq Composite also saw a strong gain of 0.95% to settle at 17,857.02. The Dow Jones Industrial Average added 188.94 points, or 0.49%, to end at 38,778.10, breaking a four-day losing streak.

According to Greg Bassuk, CEO at AXS Investments, the positive momentum in the market is a result of stronger and more consistent economic data, indicating a resilient economy. There is also growing optimism around the possibility of rate cuts in the near future.

Megacap technology stocks played a significant role in boosting the S&P 500, with companies like Microsoft, Apple, Alphabet, Amazon, and Meta Platforms all finishing higher. Nvidia reached a new all-time high, although it closed slightly lower, as State Street announced that the chipmaker will have a significant weighting in its tech exchange-traded fund.

Monday’s gains come after the S&P 500 and Nasdaq posted their seventh weekly gain in eight weeks, raising questions about the sustainability of the current market momentum. Despite the positive outlook, experts like Mona Mahajan, senior investment strategist at Edward Jones, warn that corrections are typical in any trading year.

Investors are now eagerly awaiting key economic data, including May retail sales and housing market indicators, to gauge the strength of the recovery and potential market trends in the coming weeks.