Nasdaq, S&P 500 Futures Firmly In Green: What’s Driving Action Monday – Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), SPDR S&P 500 (ARCA:SPY)

Editor’s note: This story has been updated to correct an error in the date.

Wall Street is eyeing a strong start to the week, with mega-cap tech stocks and the resumption of the meme rally likely providing the thrust the market needs to break out of the lackluster phase seen in late May. The meme stock rally set in motion by Roaring Kitty’s disclosure of a huge GameStop Corp. (NYSE:GME) stake could lend support to the small-cap space, while the Computex 2024 presentation in Taiwan will likely buoy the tech space. A couple of manufacturing activity data due for the day could also be on traders’ radar.

Cues From Previous Week:

Concerns about growth and the Fed funds rate trajectory as well as poor reception to Treasury bond options sapped risk appetite in the holiday-shortened week ended May 31, with all three major averages recording losses for the week. A tamer-than-expected inflation data released on Friday helped the broader market trim its weekly losses.

Tech stocks led the week’s sell-off, with the Nasdaq Composite and the S&P 500 Index snapping a five-week winning streak.

Despite the week’s lackluster performance, the major indices were solidly higher for the month.

Insights From Analysts:

Carson Group‘s Chief Investment Strategist Ryan Detrick does not see a setback for the market in June after a fairly resilient May. “June historically isn’t a very good month for stocks, with the old saying ‘June Swoon’ quite common,” he noted.

However, the strategist said this time it could be different as June tends to do quite well in election years. He also noted that when a president is in their first term the second half of the year does quite well, compared with a lame-duck president.

Upcoming Economic Data:

The week’s economic calendar is heavily loaded with job market reports, the chief among them being the non-farm payrolls report for May due on Friday. Traders may also keep an eye on ADP’s private payrolls report due on Wednesday, the customary weekly jobless claims data, the final first-quarter productivity and costs report and the results of the April Job Openings And Labor Turnover survey.

A few private-sector activity readings for May, the April factory goods orders report and the April trade balance data are also on tap.

On Monday, S&P Global will release its final manufacturing purchasing managers’ index for May at 9:45 a.m. EDT. The flash reading released mid-May showed an increase in the index from 50 in April to 50.9 in May.

The Institute for Supply Management will release its manufacturing PMI at 10 a.m. EDT, with the index likely improving from 49.2 in April to 49.8 in May. A reading below ’50’ suggests a contraction in activity.

The Commerce Department’s construction spending report, due at 10 a.m. EDT, is expected to show a 0.2% month-over-month increase in April, reversing March’s 0.2% drop.

The Treasury will auction three- and six-month bills at 11:30 a.m. EDT.

See Also: How To Trade Futures

Stocks In Focus: