4-7-2023 (WASHINGTON) U.S. stocks ended slightly higher on Monday in subdued trading ahead of the Fourth of July Independence Day holiday as investors geared up for the second half of 2023 following a strong first-half market rally.
The Dow Jones Industrial Average rose 10.87 points, or 0.03 percent, to 34,418.47. The S&P 500 added 5.21 points, or 0.12 percent, to 4,455.59. The Nasdaq Composite Index increased 28.85 points, or 0.21 percent, to 13,816.77.
Nine of the 11 primary S&P 500 sectors ended in green, with consumer discretionary and real estate leading the gainers by rising 1.07 percent and 0.85 percent, respectively. Meanwhile, health and technology lost 0.82 percent and 0.31 percent, respectively.
U.S. markets closed early ahead of the Independence Day holiday and will be closed Tuesday as well, with investors struggling for direction following a stellar first-half rally on Wall Street.
“There are not a lot of participants today and volume is low, but I think people are celebrating the fact that we just rocked June,” said Jeff Kilburg, founder and chief executive of KKM Financial, in an interview with The Wall Street Journal. “Investors really started the fireworks show early last Friday.”
Investors were also digesting the latest economic data released on Monday.
The U.S. manufacturing purchasing managers index (PMI) in June dropped to 46.0 from 46.9 in the previous month, according to data released by the Institute for Supply Management (ISM) on Monday. June’s reading marked the eighth straight month that the PMI stayed below the 50 threshold, signaling contraction in manufacturing and broader economic activity.
“With both global and U.S. stocks more than 20 percent above their October 2022 lows and a more challenging second-half outlook, we believe investors should position for more lackluster stock market performance through the remainder of the year,” according to an analysis published by UBS Global Wealth Management on Monday.
Later in the week, investors are going to follow a flurry of economic data on the job market, which will provide further insight on the path of the Federal Reserve’s monetary policy.
