Stock Markets Start Week Cautiously, But Consolidate Gains

Stock markets have seen the strongest rally in the last several months, as investors expect the state of the rate cut period from major central banks, which would divert from bonds to stocks, which has already started. However, they are consolidating the gains today, trading in a small range up and down.

S&P 500 H4 Chart – MAs Continue to Provide Support

Today the Dow Jones Industrial Average (DJIA) retreated slightly, following the recent surge that propelled major U.S. stock benchmarks to new highs, declining by around 40 points, representing a 0.1% decrease, while the S&P 500 dipped lower but recovered sooner, remaining nearly flat for the day. The Nasdaq Composite, which had reached record levels late last week, declined by 0.1%.

Here’s a summary of the European and US stock market indices:

European Stock Indices:

• German DAX: -18.92 points or -0.11% at 17716.16 (Friday’s high close was at 17735.08)
• France CAC: +22.23 points or 0.28% at 7956.41 (tying Friday’s closing level at 7966.69)
• UK FTSE 100: -42.17 points or -0.55% at 7640.34
• Spain’s Ibex: +5.10 points or 0.05% at 10069.79
• Italy’s FTSE MIB index: -34.73 points or -0.11% at 32899.56

US Stock Indices:

• Dow Industrial Average: -97.75 points or -0.25% at 38992.38
• S&P index: -4.05 points or -0.08% at 5132.80 (Friday’s close was a record at 5137.07)
• NASDAQ index: -40.28 points or -0.25% at 16235 (Friday’s all-time high closing price was 16274.94)

The recent surge in stock indices, particularly in the technology section driven by excitement for artificial intelligence, has propelled indices like S&P 500 above 5,000 points, to all-time highs. Given this remarkable run-up, traders may be contemplating whether it’s prudent to take some profits off the table at this juncture or to maintain their positions.

S&P 500 Live Chart