U.S. stocks edged higher on Monday, marking the start of the second half and third quarter of 2024, as investors began the countdown to the July 4 break and the key U.S. jobs report.
The Dow Jones Industrial Average (^DJI) rose 0.1%, while the S&P 500 (^GSPC) gained 0.3%. The tech-heavy Nasdaq Composite (^IXIC) climbed about 0.8%.
Tesla (TSLA) stock surged roughly 6% ahead of the EV giant’s quarterly delivery results due out on Tuesday. Meanwhile, Nvidia (NVDA) shares reversed earlier losses, temporarily easing concerns that the chip heavyweight could be facing turbulent times.
Stocks experienced a volatile start to a trading week shortened by the Independence Day holiday. Investors are debating whether the second half will bring a pullback or a broadening of the record-breaking tech-driven rally that has lifted the benchmark S&P 500 to a nearly 15% gain so far this year.
Attention is now turning to the June jobs report due Friday, which will be closely watched for signs of a cooling labor market that could support the case for interest rate cuts. Encouraging signs that inflation is slowing towards the Federal Reserve’s target, along with emerging weaknesses in the economy, have fueled hopes for a policy shift.
Data released on Monday showed that U.S. manufacturing activity continued to decline, with the Institute for Supply Management’s manufacturing PMI falling further into contraction territory in June, hitting a four-month low.
Additionally, U.S. political risks have come into focus amid questions about President Joe Biden’s future as the Democratic Party’s standard bearer.
