Futures for the S&P 500 and Nasdaq climbed, extending a rally that pushed the Dow toward a record 53,000 mark as reported by CNBC. Analysts note a sector rotation into Financials, Healthcare, and Industrials while semiconductors consolidate. The market’s focus now shifts to the upcoming Federal Reserve minutes from the June meeting, the first under new Chairman Kevin Warsh, which traders are scrutinizing for clues on the interest rate path.
U.S. stock futures advanced Sunday night, building on last week’s gains. The Dow closed in on the 53,000 level as mentioned in a report, a threshold it has never previously reached.
Analysts identified financials, healthcare, and industrials as the sectors carrying the market load. This shift occurred as the VanEck Semiconductor ETF dropped 3.2% for its second consecutive weekly loss.
Mark Newton, head of Technical Strategy at Fundstrat, stated “The broadening in sector rotation is a big positive, with Financials, Healthcare, and Industrials all closing at new weekly all-time highs this week and more than offsetting the consolidation in Semis.” Newton believes the S&P 500 could reach 8,000 by mid-August.
The primary event for traders this week is the release of the Federal Reserve’s June meeting minutes. Market veteran Ed Yardeni noted “Fed funds futures now imply 1.5 rate hikes over the next 12 months, a sharp reversal from the deep rate cut pricing that dominated the past three years.”
Overseas, Asian markets traded mixed with Japan’s Nikkei 225 falling 0.7%. The Japanese yen traded near 161.54 per dollar, close to a 40-year low.
Crude oil prices were mixed after OPEC+ agreed to raise production for a fifth straight month. Brent futures were flat at $72.12 a barrel, while WTI ticked up to $68.80.
