Some stocks could be in for a pullback as Wall Street wraps up a strong first half. The first half on Wall Street concludes after Friday's close . All three major indexes are on track to end the first half with gains, as investors have continued to ride the artificial intelligence boom despite worry over a lack of market breadth and an economic slowdown.
The benchmark S & P 500 has gained roughly 15% in 2024, while the Dow Jones Industrial Average is up 5%. The Nasdaq Composite outperformed with a 20% gain. Market gains have largely been led by the rise of Nvidia and a still prominent AI theme that pushed the de facto market leader to a $3 trillion market valuation.
Nvidia also briefly toppled Microsoft's market cap earlier in June. For its part, shares of Microsoft have surged nearly 21% in 2024 and the company similarly benefited from its own AI tailwind and the rollout of Copilot . But shares of the world's most valuable company may be showing signs of exhaustion and it could be poised for a pullback, as the stock is once again among Wall Street's most overbought stocks.
CNBC Pro screened the S & P 500 for overbought names, based on their 14-day relative strength index. An RSI above 70 indicates overbought conditions for a stock, which could signal a downturn in the near term. A reading below 30 typically signals that a stock is oversold and could be due for gains.
Shares of Microsoft registered a 14-day RSI reading of 74. The company made headlines in recent days after th.