US Stock Market prediction: US Stock Market outlook: S&P 500, Dow Jones, Nasdaq to fall or continue to rise on Monday?

US stock market indexes — S&P 500, Dow Jones, and Nasdaq — will look to continue the positive momentum on Monday. Recent history has shown July has been a strong month for stocks, with the S&P 500 increasing 2.9 per cent in July on average over the past 15 years, Wedbush analysts noted in a report this week. Overall, measures of market volatility are now well below where they stood at the height of the tariff turmoil in April, with the CBOE VIX index now at 16.3, down from a 52.3 peak on April 8. The stock market has powered through all of that in the past few months to set a new record on Friday and reward investors who stayed their ground through a volatile stretch. The S&P 500 closed at an all-time high of 6,173.

For now, at least, stocks are willing to overlook the risks that go along with this style and lack of consistent policies, and give the administration a break as being market friendly, said Steve Sosnick, market strategist at Interactive Brokers.

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Relief for Wall Street Investors?

While Wall Street can take a bow — and breath a sigh of relief — there’s no let-up ahead. The pause President Donald Trump put in effect for many tariffs expires in early July. Second-quarter profit reports and upcoming economic indicators could reveal more about the impact of the tariffs that did go into effect. The Fed could face a tricky decision on interest rates.

Trump wants the Fed to lower interest rates. The Fed says it needs to see the impact of Trump’s tariffs before it can act. The president has taken to regularly bashing Jerome Powell, whose term as Fed chair expires next year. According to the Wall Street Journal, Trump could name his nominee to replace Powell unusually early, in an attempt to undermine him. The drama could influence trading in the bond and foreign exchange markets, and by extension on Wall Street.Strong profit reports for the first quarter helped offset the pressure from tariffs. Soon, companies will report results for the quarter ending June 30. While Wall Street analysts have lowered their expectations for earnings growth for the companies in the S&P 500, they still forecast solid growth of 5 per cent, according to FactSet. The average quarterly profit growth over the past five years is 12.7 per cent. Some companies withdrew profit forecasts amid the uncertainty created by tariffs, making forecasting even trickier.

FAQs

Q1. What are key indexes in US Stock Market?
A1. US stock market indexes are S&P 500, Dow Jones, and Nasdaq.

Q2. What is current volatile index in US Stock Market?
A2. Overall, measures of market volatility are now well below where they stood at the height of the tariff turmoil in April, with the CBOE VIX index now at 16.3, down from a 52.3 peak on April 8.