The New York Stock Exchange (NYSE) saw a surge in U.S. stock futures on Monday following a record high close for the Dow Jones Industrial Average. Futures linked to the 30-stock average rose by 0.1%, with the S&P 500 and Nasdaq 100 futures also climbing 0.2% and 0.3% respectively.
Investors were optimistic after the Dow advanced 0.53% to a record close, with the index hitting an all-time high during the session. The S&P 500 and Nasdaq Composite also posted gains of 0.28% and 0.4% respectively.
One factor driving the market was the unsuccessful assassination attempt on former President Donald Trump, with investors betting that this could benefit the Republican presidential candidate and his party in November’s election. A victory for the GOP could lead to favorable tax and fiscal policies for investors.
Additionally, there was a continued rotation into small-cap stocks, with the Russell 2000 rising 1.8% during Monday’s session. Tom Lee, head of research at Fundstrat Global Advisors, believes that last week’s gains for the small-cap index are just the beginning of a longer rotation, predicting a potential 40% gain over the next 10 weeks.
Looking ahead, Bank of America, Morgan Stanley, UnitedHealth, and Charles Schwab are set to report earnings on Tuesday before the bell. Traders will also be keeping an eye on the latest economic data, including June’s retail sales, export and import price indexes, and May’s business inventories.
