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Dow closes at record high while S&P 500, Nasdaq slide as tech lags

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Dow closes at record high while S&P 500, Nasdaq slide as tech lags

The Dow Jones Industrial Common (^DJI) notched a document shut on Monday whereas the opposite two main averages slid as traders weighed the upcoming arrival of rate of interest cuts and braced for a busy week dominated by Nvidia’s (NVDA) earnings report.

The Dow Jones Industrial Common rose greater than 0.1% to shut at a brand new excessive of 41,240.52. The S&P 500 (^GSPC) slipped 0.3%, whereas the tech-heavy Nasdaq Composite (^IXIC) sank roughly 0.8%.

Know-how lagged through the session as shares of AI chip big Nvidia fell 2% together with semiconductor peer Broadcom (AVGO) and EV maker Tesla (TSLA).

Shares are coming off weekly beneficial properties, notched after Chair Jerome Powell made it crystal clear the Fed is able to pivot to reducing charges in September. The most important indexes all gained greater than 1% final week.

Markets rapidly moved to cost in cuts totaling 1% by the tip of 2024. However with solely three Fed conferences left within the 12 months — in September, November, and December — and the August jobs report nonetheless to come back, Wall Road is questioning when and whether or not a 0.5% reduce is probably going.

Now, the main target is firmly on Nvidia’s earnings report — the marquee occasion of the week — which can probably decide whether or not the market temper stays upbeat. If the chipmaker’s outcomes on Wednesday fail to satisfy sky-high expectations, that would additional dent the AI commerce, which has powered inventory beneficial properties, and, in flip, put the market’s rebound from August lows to the check.

Additionally forward is a Friday replace on Fed policymakers’ most popular inflation gauge, the PCE index print, which is prone to feed into rate-path calculations. Additionally on deck is a studying on second quarter GDP on Thursday.

In the meantime, oil costs jumped round 3% amid experiences of manufacturing shutdowns in Libya and fears of escalating Mideast tensions after Israel and Hezbollah launched strikes. International benchmark Brent crude futures (BZ=F) settled at $81.43 a barrel, whereas US benchmark WTI crude futures (CL=F) closed at $77.42 a barrel.

Dwell12 updates

  • Dow closes at document, S&P 500, Nasdaq lag as tech shares retreat

    The Dow Jones Industrial Common (^DJI) closed at a document excessive on Monday whereas the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) slipped as shares of Nvidia (NVDA) fell roughly 2% forward of its extremely anticipated quarterly outcomes later this week.

    The Dow Jones Industrial Common rose 0.1% to shut at 41,240.52 as Supplies (XLP), Utilities (XLU), and Vitality (XLE) gained.

    Know-how (XLK) shares underperformed through the session with Broadcom (AVGO) and EV maker Tesla (TSLA) falling greater than 3%, dragging on the Nasdaq and S&P 500.

    PDD Holdings (PDD), also called Pinduoduo, the mum or dad firm of e-commerce platform Temu, tumbled 28% following the discharge of disappointing second quarter outcomes.

    Shares had been coming off Friday beneficial properties after Fed Chair Jerome Powell indicated policymakers had been able to pivot and reduce on the subsequent FOMC assembly in September.

  • Historical past exhibits aggressive Fed price cuts won’t be an excellent factor for shares

    Now that Fed Chair Jerome Powell has opened the door for a rate-cutting cycle to start, economists have reasoned how deeply the Fed will reduce in 2024 will largely rely on how the labor market holds up.

    If the August jobs report, due out on Sep. 6, confirms that labor market weak point within the July report might have been overstated, many economists argue the Fed will start with a 25 foundation level rate of interest reduce.

    In different phrases, the Fed would not must slash charges due to persistent indicators the economic system is weakening. And to many strategists, this stays the important thing factor traders ought to be specializing in when excited about Federal Reserve cuts.

    If the Fed cuts as a result of the economic system wants assist, it hasn’t been good for shares. Analysis from Truist co-chief funding officer Keith Lerner despatched to shoppers on Monday exhibits that the S&P 500 was a minimum of 11% greater a 12 months after the primary Fed rate of interest reduce relationship again to 1989, so long as the economic system remained on stable footing.

    Nonetheless, when the US economic system entered recession within the following 12 months, the S&P 500 fell by a minimum of 14% over the subsequent 12 months, per Lerner’s analysis.

    This offers a transparent read-through for as we speak’s setting. If the Fed is compelled to chop extra aggressively due to a big downturn within the labor market, historical past says that is not a welcome signal for the inventory market.

  • Nvidia to report Q2 earnings Wednesday in main check for AI commerce

    Nvidia (NVDA) inventory fell greater than 2% on Monday as traders await the chip big’s quarterly outcomes set for Wednesday after the closing bell.

    Yahoo Finance’s Dan Howley experiences:

    Nvidia’s earnings announcement — probably the most anticipated outcomes of the quarter — will ship ripple results all through the tech sector as traders search for indicators that the AI commerce will proceed to dominate market conversations into the second half of the 12 months.

    Nvidia inventory is up greater than 163% 12 months thus far and 60% within the final six months. Rival AMD’s (AMD) inventory worth is up 9% 12 months thus far and down some 14% over the past six months.

    Intel (INTC) shares have collapsed 57% because the begin of the 12 months and are down 53% over the past six months as the corporate continues to wrestle amid its large turnaround effort.

    Learn extra right here.

  • Traders are betting the Powell pivot will relieve regional financial institution woes

    Yahoo Finance’s David Hollerith experiences:

    A pivot from Federal Reserve Chair Jerome Powell has traders betting that US financial institution shares are poised to maneuver greater as decrease rates of interest are anticipated to supply much-needed reduction to some beleaguered lenders.

    That wager despatched an index monitoring midsize regional banks (^KRX) up 5% Friday, the most important single-day advance for the index in all of 2024. It held these beneficial properties Monday.

    That appreciable transfer got here after Powell gave markets the all-clear sign by saying “the time has come to regulate coverage,” establishing the primary Fed reduce in additional than 4 years.

    An index monitoring the broader banking sector (^BKX) is now up greater than 18% on the 12 months, consistent with the efficiency of the S&P 500 (^GSPC).

    Learn extra right here.

  • Oil costs bounce 3% on Center East tensions, Libya manufacturing halt

    Oil costs jumped sharply on Monday amid a halt in Libyan oil manufacturing and heightened tensions within the Center East.

    West Texas Intermediate (CL=F) rose as a lot as 3% to hover above $77 per barrel, whereas Brent (BZ=F), the worldwide benchmark worth, elevated greater than 2% to commerce above $80 per barrel.

    Over the weekend, Israel carried out an airstrike in opposition to Tehran-backed Hezbollah’s rocket launching stations in Lebanon, including to fears of a broader battle involving Iran breaking out within the area.

    “The rise in tensions may carry an Iranian navy response which, if seen, may sluggish world oil actions,” Dennis Kissler, senior vp at BOK Monetary, wrote in a word to shoppers on Monday.

    Learn extra right here.

  • Gold climbs amid geopolitical tensions, anticipated price reduce

    Gold costs neared document highs on Monday as traders flocked towards the valuable metallic amid heightened geopolitical tensions and the expectation of a Fed price reduce in September.

    Gold futures (GC=F) for December supply climbed above $2,552 per ounce.

    The dear metallic is up greater than 23% 12 months thus far, making it one of many best-performing commodities of the 12 months.

  • Tech shares lag as Nvidia, Broadcom, Tesla fall

    Tech shares lagged on Monday, dragging on the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC).

    Shares of Nvidia (NVDA) fell greater than 1.5% by 12:30 p.m. ET, although they had been off their session lows. Semiconductor Broadcom (AVGO) dropped greater than 3% whereas EV maker Tesla (TSLA) additionally fell greater than 2%.

    In the meantime, Supplies (XLP), Utilities (XLU), and Vitality (XLE) shares gained, serving to elevate the Dow Jones Industrial Common (^DJI) greater.

    Tech lagged on Monday while Materials, Utilities and Energy stocks gained.Tech lagged on Monday while Materials, Utilities and Energy stocks gained.

    Tech lagged on Monday whereas Supplies, Utilities and Vitality shares gained.

  • McLaren CEO appears to observe Ferrari’s blueprint for achievement — however with ‘no conceitedness’

    Yahoo Finance’s Pras Subramanian experiences:

    CARMEL, Calif. — McLaren CEO Michael Leiters believes that the British luxurious supercar maker can succeed very similar to Ferrari has — however in a considerably completely different method.

    “We’ve got one ingredient in our model, and it’s belonging,” Leiters, who has been on the helm of McLaren for 2 years after eight years as Ferrari’s chief know-how officer, mentioned in an interview with Yahoo Finance throughout Monterey Automobile Week. “We need to have folks right here. … We converse with everyone — no conceitedness.”

    That could possibly be learn as a not-so-veiled swipe at Ferrari, on condition that the Italian luxurious sports activities automobile producer is infamous for secrecy, invite-only occasions, and solely promoting new automobiles to present or favored clients.

    Learn extra right here.

  • Dow jumps 200 factors whereas Nasdaq falls, Nvidia declines 2%

    The markets diverged on Monday because the Dow Jones Industrial Common (^DJI) rose as a lot as over 200 factors to the touch a contemporary intraday document.

    The S&P 500 (^GSPC) erased earlier beneficial properties to fall 0.3%, whereas the tech-heavy Nasdaq Composite (^IXIC) dropped greater than 1%, led by a fall in shares of Nvidia (NVDA).

    The AI chip heavyweight will report quarterly outcomes this Wednesday after the market shut.

    EV big Tesla (TSLA) additionally fell greater than 3%, weighing on the S&P 500 and Nasdaq.

  • Dow beneficial properties 200 factors, touches intraday document

    The Dow Jones Industrial Common (^DJI) rose greater than 200 factors, or 0.5%, on Monday morning, touching a brand new intraday document of 41,394.10.

    Vitality and Supplies led the beneficial properties on Monday. In the meantime, Know-how shares lagged, with the tech-heavy Nasdaq Composite (^IXIC) slipping as a lot as 0.7% whereas the S&P 500 (^GSPC) fell barely.

  • S&P 500 inches towards document excessive

    The S&P 500 (^GSPC) rose 0.3% on Monday, inching nearer to its July document highs. The index was lower than 0.5% away from its July 16 all-time document shut of 5,667.20.

    The Dow Jones Industrial Common (^DJI) rose 0.3% on Monday. The tech-heavy Nasdaq Composite (^IXIC) drifted simply above the flat line after opening barely decrease.

  • Shares open combined as traders flip give attention to Nvidia earnings this week

    Shares traded combined on Monday as traders turned their focus to a busy week spearheaded by Nvidia’s (NVDA) earnings report.

    The S&P 500 (^GSPC) rose roughly 0.1%, whereas the Dow Jones Industrial Common (^DJI) added roughly 0.2%. The tech-heavy Nasdaq Composite (^IXIC) slipped just under the flat line after the most important indexes rallied on Friday.

    The main focus this week is firmly on Nvidia earnings. So much is using on these outcomes because the AI chip heavyweight has been a significant driver of the markets this 12 months. Nvidia inventory was little modified on Monday morning following a 4.5% achieve on Friday.

    Shares neared contemporary document highs on Friday after Fed Chair Jerome Powell made it crystal clear the central financial institution is able to pivot to reducing charges in September. The benchmark S&P 500 index is lower than 1% away from topping the all-time closing excessive set in July.

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