Stock Futures Up as SPX Eyes New High
U.S. stock futures trended higher ahead of Friday's session as investors watched major indexes near record highs and awaited key inflation data. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 0.11%, 0.15%, and 0.12%, respectively, at 1:09 a.m. EST, June 27.
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In Thursday's trading, the stock market posted solid gains, with both the S&P 500 and Nasdaq 100 closing near all-time highs. The S&P 500 rose 0.80%, the Nasdaq 100 added 0.94%, and the Dow Jones climbed about 0.9%.
On Friday, all eyes will be on the May reading of the personal consumption expenditures (PCE) price index, a key inflation gauge.
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Miami Herald
30 minutes ago
- Miami Herald
Rare event could derail S&P 500 record-setting rally
The stock market has had a record-setting run following President Trump's decision to pause reciprocal tariffs on April 9. The move to de-escalate trade tensions reversed a brutal selloff in the S&P 500 that at its worst had sent the benchmark index tumbling 19%, nearly into bear market drop territory. The market decline was severe enough to trigger oversold readings on most sentiment measures, and many market watchers were savvy enough to recommend buying into the fear. However, far fewer likely expected the rally to persist amid a tidal wave of economic concerns and global uncertainty. Yet, that's precisely what the S&P 500 has done. Rather than backfill gains, it has essentially beelined higher, creating a V-shaped bottom that has surprised many who remain with cash on the sidelines watching, hoping for a chance to buy. The index's advance is remarkable, but stocks don't rise or fall in a straight line, and mounting evidence suggests that the S&P rally could stall soon, especially after one particularly rare signal flashed on Friday. Weiss/Getty Images A raging bull market lifted the S&P 500 by over 20% in back-to-back years in 2023 and 2024, including a robust 24% gain last year. The gains were fueled by optimism that the Federal Reserve would switch to market-friendly interest rate cuts, thanks to falling inflation, and abandon the hawkish monetary policy it adopted in 2022 in its war against inflation. Related: Jim Cramer sends strong message on Nvidia stock at all-time highs A tsunami of artificial intelligence spending also supported gains as companies raced to develop AI chatbots and agentic AI apps. Those bullish arguments looked much flimsier this spring. The Fed cut interest rates in September, November, and December last year; however, it paused additional reductions this year because it feared tariffs would spark price increases. In May, Personal Consumption Expenditures (PCE) price index, excluding energy and food because of their volatility, showed inflation was 2.7%, up from 2.6% in April, and over the Fed's 2% inflation target. The Fed's pause removed some excitement that lower rates would spark business investment and lower interest expenses on variable debt-bad news for corporate sales and earnings growth that contributes to higher stock prices. Similarly, earlier this year, fears mounted that major hyperscalers, including Amazon's AWS, Meta Platforms, Google Cloud, and Microsoft's Azure, would pare back AI spending on servers and AI chips after two years of huge spending growth. Those concerns strengthened after the launch of the Chinese-built Deepseek-R1, a rival to OpenAI's ChatGPT and Google's Gemini, in January. DeepSeek was reportedly built for only $6 million using cheaper, legacy semiconductor chips, rather than Nvidia's latest fastest Blackwell lineup of graphic processing units (GPUs). However, concerns over the Fed and AI spending have decreased since April. Cloud network providers, including hyperscalers, have mostly reinforced their capex plans for this year. Amazon has affirmed a capex run rate of over $100 billion. Meta Platforms increased its planned spend to as much as $72 billion from $65 billion previously. Microsoft confirmed in June that it still plans to spend $80 billion. And Google will likely spend about $75 billion. More Experts Analyst makes bold call on stocks, bonds, and goldTheStreet Stocks & Markets Podcast #8: Common Sense Investing With David MillerVeteran fund manager sends dire message on stocks Meanwhile, while the Fed didn't cut rates again in June, it maintained its closely-watched dot-plot forecast plans to cut rates twice before year-end. Some Fed members have also recently expressed interest in cutting as soon as July, and most believe a Fed cut will likely happen in September, suggesting lower rates are getting closer by the day. With rates potentially heading lower soon and AI spending mostly intact, tariff worries are the last remaining hurdle, and those concerns have also ratcheted back following trade progress with the UK and China. The S&P 500 has clearly climbed the proverbial wall of worry, closing at a new all-time high of 6,173.07 on June 27. The bad news, however, is that the rally has lifted the S&P 500's valuation back toward levels seen when the index made its previous all-time high in February. The S&P 500's forward price to earnings (P/E) ratio is 21.9, up from about 19 in April. In February, it was above 22, according to FactSet. Related: Fannie Mae chief Pulte sends savage one-word message to Fed's Powell The index's average P/E ratio over the past five and ten years is 19.9 and 18.4, respectively. Unfortunately, it's historically harder to come by gains in the year following a P/E ratio above 22 Clearly, the S&P 500 isn't as cheap as it was in April, and that could create a headwind for stocks, particularly given sentiment measures aren't oversold like they were then. CNN's Fear/Greed Index registered "Extreme Fear" in April, but it's at "Greed" now. The American Association of Individual Investors survey saw bearish outlooks for the coming six months surge to 61.9% in April, the third highest on record and the highest reading since the stock market bottomed in March 2009 during the Great Financial Crisis. Now, bearishness is more neutral at 40%. Increasing investor giddiness may make it harder for the S&P 500 to continue rallying, at least in the short term. This is especially true given that another relatively rare signal, a relative strength index (RSI) (14) reading above 70, flashed a warning on Friday. RSI (14) measures price action over the preceding 14 trading periods and can signal when stocks become overbought and oversold. An RSI above 70 on the S&P 500 signals buyer beware, while a reading below 30, like in April when the RSI on the SPDR S&P 500 ETF Trust (SPY) dropped to about 21, suggests selling is overdone. Currently, the RSI on the S&P 500 is 70.2. For perspective, it last exceeded 70 on December 4, before a 4% retreat through January 10. It reached 69.97 on May 19, before a short-and-fast 2.7% drop. Of course, nothing is guaranteed. Stocks can always fall further than anyone expects and remain overbought for a while. John Maynard Keynes famously wrote, "Markets can remain irrational longer than you can remain solvent." Nevertheless, the high RSI reading may suggest that the S&P 500 rally may stall in the coming weeks. In the intermediate or long term, well, gains or losses will likely depend on whether high tariffs fuel inflation, causing the Fed to stay on the sidelines, and whether business spending forecasts stay strong or weaken. Related: Legendary fund manager issues stock market prediction as S&P 500 tests all-time highs The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
an hour ago
- Yahoo
Would Investing $10K in the Magnificent 7 Stocks in 2023 Have Made You Rich?
The Magnificent 7 stocks have made headlines in recent years for their eye-popping returns. In fact, taken as a whole, Amazon (AMZN), Google parent company Alphabet (GOOGL), Nvidia (NVDA), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT) and Tesla (TSLA) have been credited with propping up the entire market — and that's not much of an exaggeration. According to J.P. Morgan, those seven stocks alone contributed a whopping 55% of the S&P 500's entire return in 2024. But their outperformance was even greater in 2023, when they made up an incredible 63% of the S&P 500's return, helping them earn their 'magnificent' nickname. Read Next: Learn More: In a nutshell, if you had the foresight to invest in the Magnificent 7 stocks at the beginning of 2023, you would have done quite well. How well? Read on to see how this statistical performance translates into real dollars and cents. Closing price on Dec. 30, 2022: $87.70 Closing price on June 16, 2025: $176.77 Total percentage return: 101.6% Current value of $10,000 invested on Dec. 30, 2022: $20,160 Check Out: Closing price on Dec. 30, 2022: $84.00 Closing price on June 16, 2025: $216.10 Total percentage return: 157.3% Current value of $10,000 invested on Dec. 30, 2022: $25,730 Closing price on Dec. 30, 2022: $128.27 Closing price on June 16, 2025: $198.42 Total percentage return: 54.7% Current value of $10,000 invested on Dec. 30, 2022: $15,470 Closing price on Dec. 30, 2022: $14.60 Closing price on June 16, 2025: $144.69 Total percentage return: 891.0% Current value of $10,000 invested on Dec. 30, 2022: $99,100 Closing price on Dec. 30, 2022: $119.78 Closing price on June 16, 2025: $702.12 Total percentage return: 486.2% Current value of $10,000 invested on Dec. 30, 2022: $58,620 Closing price on Dec. 30, 2022: $235.04 Closing price on June 16, 2025: $479.14 Total percentage return: 103.9% Current value of $10,000 invested on Dec. 30, 2022: $20,390 Closing price on Dec. 30, 2022: $123.18 Closing price on June 16, 2025: $329.13 Total percentage return: 167.2% Current value of $10,000 invested on Dec. 30, 2022: $26,720 Total return in 2023: 76% Total return in 2024: 48% Year-to-date return in 2025 as of June 16: 0% Current value of $10,000 invested on Dec. 30, 2022: $26,048 As a whole, the Magnificent 7 stocks would have more than doubled your money over the past 2 1/2 years. Individual stocks within the Magnificent 7, however, would have multiplied your money exponentially. Nvidia, for example, single-handedly blew away the returns of both the S&P 500 and the other stocks within the Magnificent 7, returning a massive 891%. If you had invested $100,000 in Nvidia at the end of 2022, you'd be sitting on a nearly $1 million portfolio in just 2 1/2 years. The bottom line is that yes, investing any amount of money in the Magnificent 7 stocks at the start of 2023 would have earned you considerable gains. While some analysts are predicting more gains ahead, bear in mind that to earn these types of returns, you have to take on considerable risk. In 2022, for example, the Magnificent 7 stocks dropped 40% as a whole, with some of its individual components losing more than 65% of their value. As high reward comes with high risk, be sure that investing in the Magnificent 7 stocks matches up with your financial objectives and risk tolerance. Editor's note: All historical closing prices were adjusted for splits, dividends and capital gain distributions, and were sourced from Yahoo Finance. More From GOBankingRates Here's the Minimum Salary Required To Be Considered Upper Class in 2025 This article originally appeared on Would Investing $10K in the Magnificent 7 Stocks in 2023 Have Made You Rich? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
Would Investing $10K in the Magnificent 7 Stocks in 2023 Have Made You Rich?
The Magnificent 7 stocks have made headlines in recent years for their eye-popping returns. In fact, taken as a whole, Amazon (AMZN), Google parent company Alphabet (GOOGL), Nvidia (NVDA), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT) and Tesla (TSLA) have been credited with propping up the entire market — and that's not much of an exaggeration. According to J.P. Morgan, those seven stocks alone contributed a whopping 55% of the S&P 500's entire return in 2024. But their outperformance was even greater in 2023, when they made up an incredible 63% of the S&P 500's return, helping them earn their 'magnificent' nickname. Read Next: Learn More: In a nutshell, if you had the foresight to invest in the Magnificent 7 stocks at the beginning of 2023, you would have done quite well. How well? Read on to see how this statistical performance translates into real dollars and cents. Closing price on Dec. 30, 2022: $87.70 Closing price on June 16, 2025: $176.77 Total percentage return: 101.6% Current value of $10,000 invested on Dec. 30, 2022: $20,160 Check Out: Closing price on Dec. 30, 2022: $84.00 Closing price on June 16, 2025: $216.10 Total percentage return: 157.3% Current value of $10,000 invested on Dec. 30, 2022: $25,730 Closing price on Dec. 30, 2022: $128.27 Closing price on June 16, 2025: $198.42 Total percentage return: 54.7% Current value of $10,000 invested on Dec. 30, 2022: $15,470 Closing price on Dec. 30, 2022: $14.60 Closing price on June 16, 2025: $144.69 Total percentage return: 891.0% Current value of $10,000 invested on Dec. 30, 2022: $99,100 Closing price on Dec. 30, 2022: $119.78 Closing price on June 16, 2025: $702.12 Total percentage return: 486.2% Current value of $10,000 invested on Dec. 30, 2022: $58,620 Closing price on Dec. 30, 2022: $235.04 Closing price on June 16, 2025: $479.14 Total percentage return: 103.9% Current value of $10,000 invested on Dec. 30, 2022: $20,390 Closing price on Dec. 30, 2022: $123.18 Closing price on June 16, 2025: $329.13 Total percentage return: 167.2% Current value of $10,000 invested on Dec. 30, 2022: $26,720 Total return in 2023: 76% Total return in 2024: 48% Year-to-date return in 2025 as of June 16: 0% Current value of $10,000 invested on Dec. 30, 2022: $26,048 As a whole, the Magnificent 7 stocks would have more than doubled your money over the past 2 1/2 years. Individual stocks within the Magnificent 7, however, would have multiplied your money exponentially. Nvidia, for example, single-handedly blew away the returns of both the S&P 500 and the other stocks within the Magnificent 7, returning a massive 891%. If you had invested $100,000 in Nvidia at the end of 2022, you'd be sitting on a nearly $1 million portfolio in just 2 1/2 years. The bottom line is that yes, investing any amount of money in the Magnificent 7 stocks at the start of 2023 would have earned you considerable gains. While some analysts are predicting more gains ahead, bear in mind that to earn these types of returns, you have to take on considerable risk. In 2022, for example, the Magnificent 7 stocks dropped 40% as a whole, with some of its individual components losing more than 65% of their value. As high reward comes with high risk, be sure that investing in the Magnificent 7 stocks matches up with your financial objectives and risk tolerance. Editor's note: All historical closing prices were adjusted for splits, dividends and capital gain distributions, and were sourced from Yahoo Finance. More From GOBankingRates 10 Genius Things Warren Buffett Says To Do With Your Money This article originally appeared on Would Investing $10K in the Magnificent 7 Stocks in 2023 Have Made You Rich? Sign in to access your portfolio
