From Dow Jones & Company: 2024-07-02 14:11:28

Stock market hits new highs, but most stocks struggle to rally. Despite positive news, equities remain lackluster for investors. The S&P 500 fell 0.1%, Dow Jones dipped 0.1%, and Nasdaq Composite advanced 0.2%. Invesco S&P 500 Equal Weight ETF dropped 0.7%, reflecting poor average stock performance. Even with positive global economy outlook from FedEx, the ETF couldn’t reach new highs. Inflation report on Friday showed PCE index rose 2.6% year over year in May. Investors shift focus from interest rates to economic growth concerns, signaling a potentially difficult summer for investors.

Big Tech, especially the Magnificent Seven, performs well as investors worry about economic growth. Nvidia and Microsoft saw slight declines, but tech stocks can outperform in slow economic times due to AI and lower interest rates. However, concerns arise about tech stock valuations, with the S&P 500 Information Technology Sector trading at 33.5 times 12-month forward earnings. Overall, investors may face challenges ahead in the market as summer progresses.



Read more at Dow Jones & Company: The Stock Market Could Have a Cruel Summer