The S&P 500 and Nasdaq hit fresh records this week
June and the second quarter wrapped up this week, with no shortage of trade updates and record highs to satisfy trader's risk appetite. A rotation out of tech dampened sentiment midweek, but not before the Nasdaq Composite (IXIC) signed off Monday with its best quarter in five years, and alongside the S&P 500 Index (SPX), scored fresh record highs on Tuesday.
The Dow Jones Industrial Average (DJI) enjoyed a 400-point pop and fourth-straight win, as traders eyed President Donald Trump's "big, beautiful bill," which cleared the Senate. A disappointing ADP jobs report kept optimism in check, but strong nonfarm payrolls data as well as a narrower-than-expected drop in June unemployment boosted stocks again. All three indexes are headed for healthy weekly wins, with the market closing at 1 p.m. E.T. on Thursday and closed on Friday for Independence Day.
Tesla, Tech Headlines Crowd Nasdaq
A settlement with the Department of Justice (DoJ) boosted artificial intelligence (AI) names Hewlett Packard Enterprise (HPE) and Juniper Networks (JNPR), while Oracle (ORCL) stock enjoyed a bull note. AI names Meta Platforms (META) and BigBear.ai (BBAI) were also in focus, with the former breaking records. Trump and Tesla's (TSLA) CEO Elon Musk continued to spar, with the equity subsequently dragging the Nasdaq from its Tuesday record. Meanwhile, quantum computing giant Rigetti Computing (RGTI) reaped the benefits of more analyst praise.
Best and Worst Stocks for July, Q3
A new month means it is now time to look at seasonality trends. At least six energy names appeared on a list of the worst stocks to own in July, historically, with Coterra Energy (CTRA) among them. Google parent Alphabet (GOOGL), on the other hand, is among the best stocks to own this month, despite its 5.7% year-to-date deficit. Nvidia (NVDA) stock appeared on a list of outperformers for the third quarter, after scoring a record high on Friday. What's more, third-quarter seasonality for exchange-traded funds (ETFs) has seen a range of outperforming sectors.
Fed Minutes on Tap After Independence Day
Investors will return from the long holiday weekend to the Federal Open Market Committee’s (FOMC) meeting minutes for May, as well as consumer credit data. The earnings docket remains quiet, though Conagra (CAG), Delta Air Lines (DAL), and Levi Strauss (LEVI) will report quarterly results. With the third quarter now underway, Senior Quantitative Analyst Rocky White uncovered a list of stocks to target during the second half of the year. Meanwhile, Senior Market Strategist Matthew Timpane flagged a key SPX level that should warrant investor caution.