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Dow closes at file excessive whereas S&P 500, Nasdaq slide as tech lags
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Dow closes at file excessive whereas S&P 500, Nasdaq slide as tech lags

Bernie Goldberg
Bernie Goldberg


Contents
Dow closes at file, S&P 500, Nasdaq lag as tech shares retreatHistorical past reveals aggressive Fed price cuts may not be a superb factor for sharesNvidia to report Q2 earnings Wednesday in main take a look at for AI commerceTraders are betting the Powell pivot will relieve regional financial institution woes Oil costs soar 3% on Center East tensions, Libya manufacturing haltGold climbs amid geopolitical tensions, anticipated price lower Tech shares lag as Nvidia, Broadcom, Tesla fallMcLaren CEO seems to observe Ferrari’s blueprint for fulfillment — however with ‘no vanity’Dow jumps 200 factors whereas Nasdaq falls, Nvidia declines 2% Dow features 200 factors, touches intraday fileS&P 500 inches towards file excessiveShares open blended as buyers flip deal with Nvidia earnings this week

The Dow Jones Industrial Common (^DJI) notched a file shut on Monday whereas the opposite two main averages slid as buyers 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 throughout the session as shares of AI chip large Nvidia fell 2% together with semiconductor peer Broadcom (AVGO) and EV maker Tesla (TSLA).

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

Markets shortly moved to worth 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 Avenue is questioning when and whether or not a 0.5% lower is probably going.

Now, the main focus is firmly on Nvidia’s earnings report — the marquee occasion of the week — which can seemingly 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 features, and, in flip, put the market’s rebound from August lows to the take a look at.

Additionally forward is a Friday replace on Fed policymakers’ most well-liked inflation gauge, the PCE index print, which is more likely 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 reviews 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.

Reside12 updates

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

    The Dow Jones Industrial Common (^DJI) closed at a file 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 Power (XLE) gained.

    Know-how (XLK) shares underperformed throughout 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 features after Fed Chair Jerome Powell indicated policymakers had been able to pivot and lower on the subsequent FOMC assembly in September.

  • Historical past reveals aggressive Fed price cuts may not be a superb 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 lower in 2024 will largely depend upon how the labor market holds up.

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

    In different phrases, the Fed would not have to slash charges due to persistent indicators the financial system is weakening. And to many strategists, this stays the important thing factor buyers needs to be specializing in when interested by Federal Reserve cuts.

    If the Fed cuts as a result of the financial system wants assist, it hasn’t been good for shares. Analysis from Truist co-chief funding officer Keith Lerner despatched to purchasers on Monday reveals that the S&P 500 was no less than 11% greater a 12 months after the primary Fed rate of interest lower courting again to 1989, so long as the financial system remained on stable footing.

    Nevertheless, when the US financial system entered recession within the following 12 months, the S&P 500 fell by no less than 14% over the subsequent 12 months, per Lerner’s analysis.

    This supplies a transparent read-through for in the present day’s surroundings. If the Fed is pressured 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 take a look at for AI commerce

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

    Yahoo Finance’s Dan Howley reviews:

    Nvidia’s earnings announcement — essentially the most anticipated outcomes of the quarter — will ship ripple results all through the tech sector as buyers 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 to this point and 60% within the final six months. Rival AMD’s (AMD) inventory worth is up 9% 12 months to this point and down some 14% over the past six months.

    Intel (INTC) shares have collapsed 57% for the reason that 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 reviews:

    A pivot from Federal Reserve Chair Jerome Powell has buyers betting that US financial institution shares are poised to maneuver greater as decrease rates of interest are anticipated to offer much-needed aid 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 features Monday.

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

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

    Learn extra right here.

  • Oil costs soar 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 applied 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 might deliver an Iranian army response which, if seen, might gradual world oil actions,” Dennis Kissler, senior vice chairman at BOK Monetary, wrote in a be aware to purchasers on Monday.

    Learn extra right here.

  • Gold climbs amid geopolitical tensions, anticipated price lower

    Gold costs neared file highs on Monday as buyers flocked towards the valuable metallic amid heightened geopolitical tensions and the expectation of a Fed price lower 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 to this point, 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 Power (XLE) shares gained, serving to carry the Dow Jones Industrial Common (^DJI) greater.

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

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

  • McLaren CEO seems to observe Ferrari’s blueprint for fulfillment — however with ‘no vanity’

    Yahoo Finance’s Pras Subramanian reviews:

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

    “We now have one component 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 expertise officer, mentioned in an interview with Yahoo Finance throughout Monterey Automotive Week. “We need to have folks right here. … We communicate with everyone — no vanity.”

    That may very well 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 recent intraday file.

    The S&P 500 (^GSPC) erased earlier features 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 large Tesla (TSLA) additionally fell greater than 3%, weighing on the S&P 500 and Nasdaq.

  • Dow features 200 factors, touches intraday file

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

    Power and Supplies led the features 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 file excessive

    The S&P 500 (^GSPC) rose 0.3% on Monday, inching nearer to its July file highs. The index was lower than 0.5% away from its July 16 all-time file 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 blended as buyers flip deal with Nvidia earnings this week

    Shares traded blended on Monday as buyers 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 foremost indexes rallied on Friday.

    The main target this week is firmly on Nvidia earnings. Lots is using on these outcomes for the reason that AI chip heavyweight has been a serious driver of the markets this 12 months. Nvidia inventory was little modified on Monday morning following a 4.5% achieve on Friday.

    Shares neared recent file 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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