Healthy US Stock Market Traded High Monday, Set for Bullish Tuesday

We predicted Monday that the day would be one of healthy trading, and that is exactly what it was. All three major stock market indices traded high, closing with gains over the previous day‘s trading.

The Dow Jones led the way with over 200 points gained and an increase of 0.53%. The Nasdaq Composite gained 0.40% with 74 points added, and the S&P 500 grew by 0.28% with 15 points added.

Across most of the stock market indices, there were no outrageous gains by any company, except on the Nasdaq Composite, which saw major movement from a number of companies. Autonomix Medical Inc. (AMIX) saw the biggest gains, increasing by 123% before trading closed off on Monday. The medical technology company had just secured a license with RF Innovations Inc. which develops radiofrequency generators.

Aslan Pharmaceuticals (ASLN) fell 45% on Monday as it prepares to be delisted from the Nasdaq Composite. The company could no longer meet the minimum requirements for listing and will not be appealing the decisions for delisting.

Economic Factors to Consider

Recent US PPI numbers were hotter than anticipated, showing increased prices, and yet the Federal Reserve is optimistic about the economy as well as where inflation is headed. The Fed is still on track to issue interest rate cuts later this year, perhaps as early as next month.

This week’s retail sales for the United States showed a growth of 3.42% compared to data from last year. However, the month-to-month sales showed declining growth, with retail sales up by 0.47% in June compared to May of this year. The growth from April to May was 1.35%.

Overall, we are seeing indications that the economy is slowly improving and that the effects of recession are diminishing. This gives the stock market a chance to perform well, and there is evidence of a healthy market that should continue to set new records as the summer progresses.