In a cautious start to the trading week, stock futures showed minimal movement on Sunday evening. Dow Jones Industrial Average futures dipped by 13 points, while S&P 500 futures and Nasdaq 100 futures experienced slight losses of 0.1% and 0.03% respectively.

Last week, the Dow Jones slipped by 57 points on Friday, while the S&P 500 posted a marginal decrease of 0.04%. On the other hand, the Nasdaq Composite continued its winning streak, ending the week with a record high for the fifth consecutive session with a 0.12% gain. These mixed results saw the Dow Jones recording its third losing week in four, while the S&P 500 and Nasdaq enjoyed their seventh up week in the last eight, largely supported by the rally in the technology sector.

As we head into the new week, investors are wondering if this rally in the tech sector can sustain, as cracks begin to emerge in the market outlook. Shannon Saccocia, from NB Private, highlighted two key themes investors have been exploring this year, the secular AI theme and the notion of manufacturing revival in tandem with strong economic growth. However, weaker economic data is starting to cast doubt on the pace of recovery, suggesting that the rebound in manufacturing and industrial sectors may be slower compared to the advancements in artificial intelligence.

This week, investors will be closely monitoring several key events and data releases. On Tuesday, the market will eagerly await the release of May retail sales data, which will provide insights into consumer spending patterns. Later in the week, attention will turn to home sales and housing starts data. Additionally, quarterly earnings reports from industry giants such as Lennar, Kroger, Darden Restaurants, and CarMax will also be scrutinized for further indications of economic health and market trends.

Market participants should note that this week will be a shortened one, with markets closed on Wednesday in observance of the Juneteenth holiday, a day celebrating the emancipation of enslaved African Americans in the United States.

As the trading week commences, uncertainties loom over the market, and investors remain cautious about the sustainability of the recent rally. With economic data suggesting potential headwinds, market participants will carefully assess the upcoming releases and earnings reports to gauge the future trajectory of the stock market.