NASDAQ 100, Dow Jones, S&P 500: Major Averages End Weekly Winning Streaks, Investors Seek Momentum

Highlights

• Stock futures show little movement, questioning market rally’s momentum.
• All major averages experience weekly losses, breaking their respective winning streaks.
• Tech-heavy Nasdaq outperforms with a yearly surge, while Dow sees modest gains in 2023.

Overview

Stock futures showed little movement on Monday morning as Wall Street sought to determine if the market rally could gather further momentum in the final week of June.

At 07:48 GMT, blue chip Dow futures are trading 33881.00, down 96.00 or -0.28%. Benchmark S&P 500 Index futures are at 4376.25, down 12.75 or -0.29% and tech-weighted Nasdaq futures are trading 15013.00, down 45.25 or -0.30%.

Majors Break Weekly Winning Streaks

Last week witnessed a sputtering market rally, with the Nasdaq Composite falling by 1.44%, while the S&P 500 dipped 1.01%. The Dow, which has been underperforming this year, experienced a 1.67% decline.

Notably, all three major averages concluded the week with losses, marking the end of their respective winning streaks. The Dow broke its three-week winning streak, while the S&P 500 ended its five-week winning streak, and the Nasdaq Composite snapped its impressive eight-week winning streak. These losses represented the worst week for all three indexes since March, despite the fact that they still closed above their 200-day and 50-day moving averages.

Strong First Half Gains Despite Profit-taking

After a remarkable rally in recent months, the SPX and NDX finally experienced some profit-taking. While segments of the market are still on track for a strong first half of the year, the Dow has only seen a modest gain of less than 2%, compared to the tech-heavy Nasdaq Composite’s year-to-date surge of nearly 29% and the S&P 500’s increase of over 13%.

As we approach the end of June, here’s where the three major U.S. market averages stand. The Dow has gained 2.49% for the month and 1.75% for the year, while the S&P 500 has risen by 4.03% in June and 13.25% for the year. The Nasdaq Composite has recorded a monthly gain of 4.31% and an impressive year-to-date surge of 28.91%.

Earnings on Tap:  Walgreens and Nike

As the final week of June unfolds, the economic reports and corporate earnings calendar remain light. Notable highlights include Walgreens Boots Alliance on Tuesday and Nike on Thursday. Traders will closely monitor the situation in Europe, where Russia witnessed a brief rebellion by a private military group over the weekend, leading to heightened uncertainty that may keep the markets on edge.

In the coming days, market participants will closely watch for any signs of renewed momentum or potential headwinds as June draws to a close.