US stock market prediction: Will Nasdaq, S&P 500, Dow Jones slip or rise on Monday? Check lucrative stocks

US Stock Market indexes -- Dow Jones, S&P 500, and Nasdaq -- will look to maintain its positive run at the Wall Street. However, investors will keep close eyes on the Federal Reserve and Fed Chair Jerome Powell to check whether there will be interest rate cut or not. U.S. stocks edged back from their record levels on Friday in a quiet finish to another winning week. The S&P 500 slipped 0.3 per cent from the all-time high it set the day before, as it closed its fourth winning week in the last five. The Dow Jones Industrial Average flirted with its own record, which was set in December, before ending just below the mark with a rise of 34 points, or 0.1 per cent. The Nasdaq composite dipped 0.4 per cent, though it’s still near its record set on Wednesday.

The U.S. stock market reached all-time highs this past week as expectations built that the Federal Reserve will deliver a cut to interest rates at its next meeting in September. Lower rates can boost investment prices and the economy by making it cheaper for U.S. households and businesses to borrow to buy houses, cars or equipment, but they also risk worsening inflation.

US Stock Market Outlook

Companies likely to benefit most from lower borrowing costs have been among the big winners in recent Wall Street trading, said Andrew Slimmon, head of Applied Equity Advisors at Morgan Stanley Asset Management.

Shares of leading homebuilders such as PulteGroup, Lennar, and D.R. Horton are up between 4.2 per cent and 8.8 per cent in the last week, as of midday Friday, thanks largely to the recent drop in mortgage lending rates.

Their gains trounced the 1 per cent rally in the Standard & Poor's 500 index over the last week. The group has outpaced the broader market more dramatically over the last month, with gains of 15 per cent to 22 per cent compared to 3.3 per cent for the S&P 500. But their future gains hinge on mortgage rates continuing to fall, something that a recent uptick in 10-year Treasury bond yields puts into question.

FAQs

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

Q2. Which stocks have gone up?
A2. Shares of leading homebuilders such as PulteGroup, Lennar, and D.R. Horton are up between 4.2 per cent and 8.8 per cent in the last week, as of midday Friday, thanks largely to the recent drop in mortgage lending rates.