The market saw a mixed reaction in stock futures as June came to a close, with the first half of 2024 ending at near record highs. The S&P 500 hit an intraday record last Thursday, continuing its bullish trend with an 0.6% gain for the eighth positive week in nine.
Nvidia, a key player in the market, experienced a 4% drop last week after consecutive declines exceeding 3%. Analysts are cautious about Nvidia’s rapid rise, warning that it may face obstacles ahead despite its strong fundamentals.
The enthusiasm surrounding Artificial Intelligence (AI) continues to be a significant driver for market gains in 2024. This trend is expected to shape the market direction in the coming months.
Gold prices rose by 0.2% on Monday, hitting $2,325.53 per ounce as falling Treasury yields increased the appeal of bullion. On the other hand, oil prices dropped for the second consecutive session, with both Brent crude and West Texas Intermediate crude losing 0.5% of their value. A stronger dollar placed pressure on commodities, despite the gains seen last week due to heightened U.S. demand and geopolitical uncertainties.
In the cryptocurrency market, major digital currencies suffered losses, with Bitcoin, Ether, Cardano’s ADA, BNB, Solana’s SOL, Dogecoin, and Shiba Inu all experiencing drops. This downward trend led to over $150 million in liquidated bullish bets. The CoinDesk 20 index also fell by more than 4%. Contributing factors to these losses included significant sales by Bitcoin miners and the actions of the German government moving substantial BTC amounts to exchanges, leading to market unease.
Investors are eagerly awaiting U.S. inflation data and comments from the Federal Reserve for any signals regarding potential rate cuts. The market remains poised for potential changes as it navigates through the second half of 2024.