US stocks surged to new all-time highs on Monday, with the S&P 500 achieving its 30th record close of the year. Wall Street continues to speculate on the sustainability of the bull rally that has dominated 2024.
The S&P 500 increased nearly 0.8%, while the tech-heavy Nasdaq Composite climbed almost 1%, marking its sixth consecutive record close. The Dow Jones Industrial Average also gained 0.5%.
The ongoing tech-driven rally has prompted Wall Street analysts to revise their year-end targets for the S&P 500.
Evercore ISI raised its target to 6,000, and Goldman Sachs adjusted its target to 5,600. Last week, the benchmark index surpassed the 5,400 mark for the first time, closing Monday at 5,473.
With the recent release of key inflation reports and the Federal Reserve meeting behind them, investors have fewer catalysts this week. The main event will be Wednesday’s retail sales report, offering insights into the health of the US consumer.
Regarding interest rates, Federal Reserve Bank of Philadelphia President Patrick Harker hinted at a potential rate cut in 2024. “If we start to see several months of data moving in the right direction, I could see taking action. But I’m not there right now,” Harker stated at an event in Philadelphia.
Similarly, Minneapolis Fed President Neel Kashkari suggested on Sunday that a December rate cut might be the Fed’s sole move this year.
According to the CME FedWatch tool, investors are pricing in a roughly two-thirds chance that the central bank will begin cutting rates by September.
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