Traders work on the floor of the New York Stock Exchange during morning trading on May 17, 2024 in New York City.
Angela Weiss | AFP | Getty Images
U.S. stock futures were little changed on Sunday night, after the Dow Jones Industrial Average closed above the key 40,000 level for the first time ever on Friday.
Futures tied to the 30-stock index rose by less than 0.1%. S&P 500 futures and Nasdaq 100 futures were also marginally higher.
The Dow first hit the 40,000 level during Thursday’s trading session, but cinched its first close over the threshold a day later when it added 134.21 points, or 0.3%, to end Friday at 40,003.59. The S&P 500 inched 0.1% higher Friday, while the Nasdaq Composite slipped by less than 0.1%.
This market rally should continue at least in the short term, according to Tom Lee, head of research at Fundstrat Global Advisors.
“As we stated earlier this month, we expected markets to shift from ‘fear of May’ to buy in May; and as each week has passed, this has been the case. Looking into next week, we expect this to continue,” he wrote in an email.
Artificial intelligence names are due to steal the spotlight this upcoming week, with Lee highlighting several potential catalysts, including the Microsoft Build event from Tuesday to Thursday and Nvidia’s fiscal first-quarter results, due Wednesday afternoon.
“Overall, we expect these events/earnings to reinforce the improving visibility and capabilities of AI and the related spending. And as a consequence, will be an overall positive for Technology stocks and the broader market,” the analyst added.
Palo Alto Networks, AutoZone, Target, Analog Devices, Intuit and Ralph Lauren will post their results in the upcoming days. The minutes from the Federal Reserve’s April 30 to May 1 meeting are due on Wednesday. Investors will also watch out for the latest readings on several pieces of economic data including existing home sales, jobless claims and durable goods orders.