Key points:
The Nasdaq composite index (Symbol: NAS100), a technology-heavy benchmark, surged to a record high, closing at 17,879.30 points. This marked the 21st record close of the year for the index, highlighting continued enthusiasm from market participants.
Picture: The Nasdaq Composite rallying to record high, as observed on the VT Markets app.
At the same time, the broader S&P 500 also finished the session higher by 0.3%, and the Dow Jones Industrial Average edged up 0.1%.
The focus is now on the upcoming earnings season, which is expected to shed light on corporate performance for the past quarter. The strong performance in the first half of 2024, particularly the 15% gain for the S&P500, was largely driven by the promise and advancements in artificial intelligence. Companies across sectors have been integrating AI into their operations, boosting productivity and driving innovation, which has bolstered sentiment of the market.
The robust performance of the tech sector, spearheaded by developments in AI, has created an optimistic outlook for the second half of the year. Market participants are particularly keen to see how major corporations have leveraged AI technologies to enhance their earnings and revenue.
The forthcoming earnings reports from leading banks like JPMorgan and Citigroup will be closely watched as they kick off the reporting season next week.
While the outlook remains positive, it is essential to consider potential risks, such as economic slowdowns, regulatory challenges, or geopolitical tensions that could impact market performance. Traders should maintain risk management in making every single trade decision.
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