U.S. stock futures rose slightly on Monday after the Dow Jones Industrial Average closed at a record high.
Futures tied to the 30-stock Dow Jones Industrial Average rose 42 points, or 0.1%. S&P 500 futures gained 0.1% and Nasdaq 100 futures added 0.2%, respectively.
Earlier in the day, the Dow Jones Industrial Average rose 0.53% to a record close. The 30-stock index also hit an all-time high during the session. The S&P 500 added 0.28% and the Nasdaq Composite rose 0.4%.
Investors are betting that the failed assassination attempt on former President Donald Trump will act as a tailwind for the Republican presidential candidate and his party in the November election. They also expect that a GOP victory at the ballot box could pave the way for investor-friendly tax and fiscal policies.
Meanwhile, the market continued its shift towards small-cap stocks, with the Russell 2000 index rising about 1.8% during Monday's session.
In context, Tom Lee, head of research at Fundstrat Global Advisors, believes that the big gains made by the small-cap index last week represent just the beginning of a longer cycle. The Russell 2000 index gained 6% last week.
“This rally that started last week for small-cap stocks will be bigger than the October-December rally of last year, which lasted eight weeks and gained about 30% for the Russell 2000,” he said on CNBC.
He told me that small-cap stocks appear to be relatively more sold, with valuations lower this time around.
He added: We believe that this step could take about 10 weeks and by up to 40%, noting that the monthly decline in the consumer price index reading for June gives small-cap stocks the green light to rise.
