Holiday Week Kicks Off With Mixed Signals: Tech Up, Europe Rebounds

The stock market kicked off the second half of 2024 with a cautious climb. Futures contracts, which indicate how the major indexes are expected to open, rose slightly. The Dow Jones added a modest 0.2%, while the S&P 500 and Nasdaq saw even smaller gains.

This comes after a mixed first half. While the S&P 500 and Nasdaq soared thanks to continued excitement about artificial intelligence, the Dow Jones lagged behind due to a weaker second quarter. However, the Nasdaq did manage to notch its third positive quarter in a row – an impressive feat.

Looking ahead, some experts believe the tech momentum could continue through the summer, despite concerns about high valuations. They point to strong company management and earnings growth as reasons for optimism. However, potential seasonal slowdowns and the upcoming election might bring some temporary resistance.

This week will be short due to the Fourth of July holiday, but there's still plenty of economic data to watch. Manufacturing data and construction spending reports are on tap for Monday, followed by the highly anticipated June jobs report on Friday.

Meanwhile, European stocks are rebounding after a string of losses. France's CAC 40 led the gains, as investors weighed in on the recent French parliamentary elections, which resulted in no clear majority for any one party. This lack of a decisive outcome seems to be easing market anxieties.

Overall, the market is sending mixed signals as we head into the second half of the year. Tech remains a bright spot, but concerns about valuations and upcoming events linger. This week's economic data releases and the outcome of the jobs report will be key for investors looking to gauge the market's direction.