The U.S. stock market has started the week on a lackluster note, with all indices hovering around Friday’s closing values. Traders are adopting a more cautious approach as they await crucial events scheduled for the week.

The Nasdaq 100 Index is on track for its sixth month of advances. Since Lehman’s fall in 2008, such a long winning streak has only happened four times. The last time it happened was between April and August 2020.

Cues From Monday’s Trading:

The major three indices, the S&P 500, the Nasdaq 100 and the Dow all inched 0.1% higher, while small caps in the Russell 2000 outperformed by rising 0.9%. The Russell 2000 index is also approaching its 2023 highs at 2,007 points hit on February.

US Stock Market Performance on Monday

Analyst Color:

The heartening aspect of the market upside is the broader participation, and LPL Financial's Chief Technical Strategist Adam Turnquist said technicals confirm the development.

"Technical evidence suggests this year's rally is no longer just a mega-cap story as broadening participation has changed the narrative," the analyst said. He noted that the relative performance of the average stock is building and the market's advance/decline line traded at a new 52-week high.

Also, nearly 75% of the S&P 500 stocks were trading above their 200-day moving average, with cyclical sectors seeing the highest percentages among sector peers, he said. International stocks were also participating in the year's rally, with most major global benchmarks now in bull market territory, he added.

"Overall, we view the expansion in market breadth as a constructive sign for the sustainability of this bull market."

The Energy Select Sector SPDR Fund (NYSE:XLE) outperformed, rising 1.9%, while the Health Care Select Sector SPDR Fund (NYSE:XLV) was the laggard, down 1.1%.

Latest Economic Data

The Federal Reserve Bank of Dallas’s manufacturing sector general business activity index hit a four-month high of -20.0 in July 2023, marking the second consecutive monthly increase. However, the production index remained reasonably constant at -4.8, indicating a small drop in output.

The Federal Reserve will release the results of its loan office survey at 4 p.m. EDT.

See also: How To Trade Futures

Stocks In Focus:

Commodities, Bonds, Other Global Equity Markets:

Crude oil rose 0.7%, with a barrel of WTI-grade crude trading at $81. The United States Oil Fund ETF (NYSE:USO) was 0.8% higher to $72.70.  

Treasury yields were steady, with the 10-year yield down by 2 basis points to 3.93% and the two-year yield up by 1 basis points to 4.86%. The iShares 20+ Year Treasury Bond ETF (NYSE:TLT) was 0.4% higher for the day. 

The U.S. dollar index, which is tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:UUP), was flat. The EUR/USD pair, which is tracked by the Invesco CurrecyShares Euro Currency Trust (NYSE:FXE), eased 0.1% to 1.1000.

European equity indexes closed mixed. The SPDR DJ Euro STOXX 50 Etf  (NYSE:FEZ) held steady 0.5%. 

Staff writer Piero Cingari updated this report midday Monday. 

Read Next: Market Collapse? Never Been This Cheap To Protect Your Portfolio Using This Strategy, Experts Say

Photo via Shutterstock.