US stocks were mixed in choppy trading on Monday as investors weighed the imminent arrival of interest-rate cuts and braced for a busy week dominated by Nvidia’s (NVDA) earnings report.
The Dow Jones Industrial Average (^DJI) added as much as 200 points to reach a new intraday record high, before easing back to a 0.3% gain. The S&P 500 (^GSPC) slipped 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) sank 1% as shares of chip heavyweight Nvidia dropped.
Stocks are coming off weekly gains, notched after Chair Jerome Powell made it crystal clear the Fed is ready to pivot to lowering rates in September. The major indexes all gaining more than 1% for last week.
Markets quickly moved to price in cuts totaling 1% by the end of 2024. But with only three Fed meetings left in the year — in September, November and December — and the August jobs report still to come, Wall Street is wondering when and whether a 0.5% cut is likely.
Now the focus is firmly on Nvidia earnings — the marquee event of the week — which will likely determine whether the market mood stays upbeat. If the chipmaker’s results on Wednesday fail to meet sky-high expectations, that could further dent the AI trade that has powered stock gains — and, in turn, put the market’s rebound from August lows to the test.
Also ahead is a Friday update on Fed policymakers’ preferred inflation gauge, the PCE index print, is likely to feed into rate-path calculations. Also on decks is a reading on second quarter GDP on Thursday.
Meanwhile, oil prices jumped around 3% amid reports of production shutdowns in Libya and fears of escalating Mideast tensions after Israel and Hezbollah launched strikes. Global benchmark Brent crude futures (BZ=F) rose to $80.08 a barrel, while US benchmark WTI crude futures (CL=F) changed hands at $77.19 a barrel.
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Dow jumps 200 points while Nasdaq falls, Nvidia declines 2%
The markets diverged on Monday as the Dow Jones Industrial Average (^DJI) rose as much as over 200 points to touch a fresh intraday record.
The S&P 500 (^GSPC) erased earlier gains to fall 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) dropped more than 1%, led by a fall in shares of Nvidia (NVDA).
The AI chip heavyweight will report quarterly results this Wednesday after the market close.
EV giant Tesla (TSLA) also fell more than 3%, weighing on the S&P 500 and Nasdaq.
Dow gains 200 points, touches intraday record
The Dow Jones Industrial Average (^DJI) rose more than 200 points, or 0.5%, on Monday morning, touching a new intraday record of 41,394.10.
Energy and Materials led the gains on Monday. Meanwhile, Technology stocks lagged, with the tech-heavy Nasdaq Composite (^IXIC) slipping as much as 0.7% while the S&P 500 (^GSPC) fell slightly.
S&P 500 rises, inches towards record high
The S&P 500 (^GSPC) rose 0.3% on Monday, inching closer to its July record highs. The index was less than 0.5% away from its July 16 all-time record close of 5,667.20.
The Dow Jones Industrial Average (^DJI) rose 0.3% on Monday. The tech-heavy Nasdaq Composite (^IXIC) drifted just above the flatline after opening slightly lower.
Stocks open mixed as investors turn focus on Nvidia earnings this week
Stocks traded mixed on Monday as investors turned their focus to a busy week spearheaded by Nvidia’s (NVDA) earnings report.
The S&P 500 (^GSPC) rose roughly 0.1%, while the Dow Jones Industrial Average (^DJI) added roughly 0.2%. The tech-heavy Nasdaq Composite (^IXIC) slipped just below the flatline after the major indexes rallied on Friday.
The focus this week is firmly on Nvidia earnings. A lot is riding on those results since the AI chip heavyweight has been a major driver of the markets this year. Nvidia stock was little changed on Monday morning following a 4.5% gain on Friday.
Stocks neared fresh record highs on Friday after Fed Chair Jerome Powell made it crystal clear the central bank is ready to pivot to lowering rates in September. The benchmark S&P 500 index is less than 1% away from topping the all-time closing high set in July.
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