TLDR
- Dow Jones futures rose on Tuesday, building on Monday’s record close above 52,000 points.
- Alphabet’s addition to the Dow helped drive gains, with the stock jumping 4.8% on Monday.
- The Supreme Court ruled against Trump’s attempt to fire Federal Reserve Governor Lisa Cook, reinforcing Fed independence.
- S&P 500 and Nasdaq are on track for their best first-half performance since 2024.
- Bitcoin fell as investors weighed rising odds of a Fed rate hike.
US stock futures edged higher early Tuesday as Wall Street looked to close out the first half of the year on a strong note. Dow Jones Industrial Average futures gained around 60 points, or 0.1%. S&P 500 futures rose 0.1%, and Nasdaq 100 futures climbed 0.2%.
The gains follow a rally on Monday that pushed the Dow above 52,000 for the first time. Technology stocks led the charge during that session.
Tech Stocks Drive Market Gains
Alphabet played a big role in Monday’s rally. The company was recently added to the Dow and its stock rose 4.8% that day.
Alphabet joins other large technology firms already in the index. These include Amazon, Apple, Microsoft, and Nvidia. Together, this group is often called the Magnificent Seven.
Industrial equipment maker Caterpillar has also helped push the Dow higher in recent weeks. The company has benefited from demand for machinery used to build data centers.
The S&P 500 and Nasdaq are both set to post their best first-half performance since 2024. According to Dow Jones Market Data, the S&P 500 is up 8.7% so far this year. The Nasdaq has climbed 11.1% over the same period.
Analysts at LPL Financial said in a research note that while market enthusiasm has grown, it has not reached extreme levels. They noted that some sentiment indicators are stretched, but others remain closer to long-term averages.
Supreme Court Ruling Boosts Fed Independence
The Supreme Court on Monday rejected an attempt by President Trump to remove Federal Reserve Governor Lisa Cook without proper legal review. The decision supports the idea that the Fed can operate independently from political pressure.
This ruling comes shortly after Kevin Warsh took over as the new Fed Chairman. Warsh is scheduled to speak at the European Central Bank’s forum in Sintra, Portugal on Wednesday. His comments will be watched closely for hints about future interest rate decisions.
The yield on the 10-year Treasury note stood at 4.369% early Tuesday, slightly lower than the day before. Investors are also watching a series of labor market reports due later this week, including the closely followed June jobs report.
A strong labor market could lead the Fed to keep rates higher for longer. Some analysts say it could even prompt a rate increase later this year.
Nike is scheduled to report earnings on Tuesday. The company is navigating a difficult period as it works through ongoing business challenges.
Bitcoin fell on Tuesday as traders increased their bets on a US interest rate hike. The cryptocurrency was also pressured by expectations of potential Bitcoin sales tied to corporate strategy.
Gold prices were on pace for a 12% monthly loss. The decline comes as hawkish expectations around the Fed’s policy path grow.
Oil prices slipped as attention turned to possible talks between the US and Iran in Doha. The easing of tensions between the two countries had earlier helped lift broader market sentiment.
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