US stocks have been predicted to extend their recovery on Tuesday, as investors approach the final session of a second quarter that has delivered a strong rebound for many risk assets.
Futures pointed to a slightly firmer open, with S&P 500 futures up 0.1%, Nasdaq futures up 0.35% and Dow Jones futures only just above flat
Yesterday, Wall Street ended a five-day losing run, with the Dow Jones rising 0.6% to close above 52,000 for the first time at 52,182. The Nasdaq Composite added 2.1% to 25,820, while the S&P 500 climbed 1.2% to 7,440. The quarter has been defined by a renewed rush into chip stocks, but out of tech megacaps, a stronger dollar, sharp moves in commodities and shifting expectations for the Federal Reserve.
In June, the Magnificent Seven hyperscalers have dropped around 10%, down nearly 15% from May’s peak, with Alphabet and Amazon down 17% and 19% since the May peak, Microsoft losing more than a third of its valuation since last October and Meta down nearly 30% since last August. However, the S&P is on the verge of its best quarterly performance in six years, since the index bounced back sharply from the initial pandemic slump. Kathleen Brooks at XTB said the period was “ending on a high note”, with the Philadelphia semiconductor index up 88% over the quarter and the Nasdaq ahead 22.5%. “The AI trade is still robust, even if it has splintered in recent months, with the chip makers surging and the hyperscalers struggling,” she said.