Looking back at May, tech giants handed over report cards one after another. What attracted the most attention in the market was the explosive performance of Nvidia, the “most important stock on Earth.” This also prompted the NASDAQ and S&P 500 indices to once again reach record highs within the month.
Looking ahead to June, the US investment agency Fundstrat Global Advisors predicts that the S&P 500 index may jump to 5,500 points in June, which means it is expected to rise more than 5%. It lists five major catalysts that could drive the stock market higher next month:
The first catalyst is seasonal factors favorable to the bulls; the second is that inflation continues to cool down; the third is that the investor leverage ratio is still low; the fourth is a record $6 trillion in “cash on the market”; and the fifth is steady corporate earnings.
As far as the market is concerned, as we enter June, major financial events will unfold, including the official entry into force of the Nvidia stock split, Apple's Global Developers Conference, Tesla Shareholders' Meeting, the Federal Reserve's interest rate decision, and heavy economic data.
On June 7, Nvidia plans to split shares after closing at a ratio of 1:10. At that time, Nvidia shareholders will receive an additional 9 shares for each common share, and trading will begin on June 10 on the basis of the 10:1 stock split.
Related reading:An options trader's guide to surviving after Nvidia's stock split
On June 11-15, Apple's WWDC 2024 Global Developers Conference was officially held. At that time, Apple may reveal the market's long-awaited artificial intelligence strategy and consumer-related features.
On June 13, the Federal Reserve will announce interest rate decisions and a summary of economic expectations, followed by Powell's monetary policy press conference.
On June 14, Tesla held a critical annual shareholders' meeting. This will be a “full of smoke” conference.
According to reports, shareholders at this meeting need to vote on two important matters: CEO Musk's $56 billion compensation plan, and whether to move the company's place of registration from Delaware to Texas, where it is headquartered.
On June 28, US presidential candidate Joe Biden and Trump held their first televised debate.
In addition, a series of major economic data will be revealed one after another, including non-agricultural, CPI, PPI, PCE, etc.
Editor/Somer