Wall Street closed with a mixed performance on Monday, showing some strength after a three-week losing streak. The S&P 500 experienced a 0.7% increase, thanks to gains in Tesla, Microsoft, and other Big Tech stocks, which offset the majority of stocks that fell. The S&P 500 reached 4,399.77, rising by 30.06 points. On the other hand, the Dow Jones Industrial Average fell by 36.97 points (0.1%) to 34,463.69, while the Nasdaq composite rose by 206.81 points (1.6%) to 13,497.59.
Interestingly, the 10-year Treasury yield in the bond market reached its highest level since 2007, indicating possible shifts in the market. This week, all eyes are on Nvidia’s profit report, which will be released on Wednesday. Nvidia’s stock has significantly risen this year due to the growing demand for artificial intelligence technology.
On Monday, several stocks made notable gains. Nvidia increased by 8.5%, reaffirming its strong position in the AI sector. Microsoft, another top performer in AI, rose by 1.9%. Two high-growth stocks, Tesla and Palo Alto Networks, also made positive gains. Tesla, which had previously suffered from concerns about higher interest rates, increased by 7.3% to recover from last week’s 11% loss. Meanwhile, Palo Alto Networks, a security software maker, experienced the biggest gain in the S&P 500 with a jump of 14.8%. The company reported better-than-expected profits for the spring.
Unfortunately, not all stocks performed well on Wall Street. Nikola faced difficulties as it recalled over 200 electric trucks due to battery fires. The company can’t guarantee when it will resume selling the trucks and plans to raise $325 million through the sale of convertible bonds. As a result, Nikola’s shares fell by 23%.
Looking ahead, the main economic event this week centers around a speech by Federal Reserve Chair Jerome Powell on Friday. The speech will take place in Jackson Hole, Wyoming, which has historically been a significant location for major policy announcements by the Fed. Investors are concerned that Powell may dampen hopes of further interest rate hikes and hint at potential rate cuts next year. The Fed has already raised its main interest rate to the highest level since 2001 in an attempt to address high inflation.
In conclusion, Wall Street’s mixed performance reflects the tug-of-war between different stocks, with Big Tech companies like Tesla, Microsoft, and Nvidia driving the market higher while other stocks face challenges. The bond market’s rise in the 10-year Treasury yield further indicates potential market shifts. Investors eagerly await Nvidia’s profit report and are keenly monitoring Jerome Powell’s upcoming speech for any signals about future interest rate changes.
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