U.S. stocks were mixed in choppy trading on Monday as investors considered impending interest rate cuts and prepared for a busy week dominated by Nvidia’s (NVDA) earnings report.
The Dow Jones Industrial Average (^DJI) surged 200 points to a new intraday record before tapering off to a 0.3% gain. The S&P 500 (^GSPC) fell 0.2% and the tech-heavy Nasdaq Composite Index (^IXIC) dropped 1% on a drop in shares of semiconductor giant Nvidia.
Tesla (TSLA) shares also fell 3%, contributing to declines in the Nasdaq and S&P 500.
Stocks are retreating from weekly gains after Fed Chairman Jerome Powell made it clear the central bank is prepared to start cutting interest rates in September. All major stock indexes were up more than 1% last week.
Markets quickly began pricing in a total of 1% rate cuts by the end of 2024. But with only three Fed meetings left this year — in September, November and December — and the August jobs report yet to be released, Wall Street is wondering when, and if, a 5% cut will come.
All eyes are now on the week’s highlight event, Nvidia’s earnings report, which will likely determine whether the market mood remains upbeat. If the chipmaker’s results, released on Wednesday, don’t live up to sky-high expectations, it could deal a further blow to the AI trade that has been driving the stock’s rally, ultimately testing the market’s recovery from its August lows.
Also due for release on Friday is the Fed’s preferred inflation gauge, the PCE index, which will likely factor into interest rate calculations, and second-quarter GDP figures are due for release on Thursday.
Meanwhile, oil prices rose about 3% on reports of production halts in Libya and concerns about rising tensions in the Middle East following attacks by Israel and Hezbollah. Global benchmark Brent crude futures (BZ=F) rose to $80.08 a barrel, while U.S. benchmark WTI crude futures (CL=F) were trading at $77.19 a barrel.
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Monday, August 26, 2024 at 8:30 a.m. PDT
McLaren CEO will follow Ferrari’s blueprint for success, but with ‘no arrogance’
Pras Subramanian of Yahoo Finance reports:
CARMEL, Calif. — McLaren CEO Michael Leiters believes the British luxury supercar maker can achieve the same kind of success as Ferrari, but in a slightly different way.
“We have one element to our brand, and that’s belonging,” Reiters, who has been at the helm of McLaren for two years after eight years as CTO at Ferrari, said in an interview with Yahoo Finance during Monterey Car Week. “We want talent here. … We’ll talk to anybody. There’s no arrogance.”
This could be interpreted as a not-so-veiled criticism of Ferrari, given that the Italian luxury sports car maker is notorious for secrecy, invitation-only events and only selling new cars to existing or preferred customers.
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Monday, August 26, 2024 at 7:49 AM PDT
Dow up 200 points, Nasdaq down, Nvidia down 2%
Markets were split on Monday as the Dow Jones Industrial Average (^DJI) rose more than 200 points to hit a new intraday high.
The S&P 500 (^GSPC) lost 0.3%, erasing the previous day’s gains, while the tech-heavy Nasdaq Composite Index (^IXIC) fell more than 1% on a drop in shares of Nvidia (NVDA).
The AI chip giant is scheduled to release its quarterly earnings after the market closes this Wednesday.
EV giant Tesla (TSLA) also fell more than 3%, weighing on the S&P 500 and Nasdaq.
Monday, August 26, 2024, 7:31 a.m. PDT
The Dow rises 200 points to a new intraday record
The Dow Jones Industrial Average (^DJI) rose more than 200 points (0.5%) on Monday morning to hit an intraday record high of 41,394.10.
Energy and materials led gains on Monday, while technology stocks struggled, with the tech-heavy Nasdaq Composite Index (^IXIC) down 0.7% and the S&P 500 (^GSPC) slightly lower.
Monday, August 26, 2024 at 6:42 AM PDT
S&P 500 rises, nearing all-time high
The S&P 500 (^GSPC) rose 0.3% on Monday, inching closer to its July record high. The index is less than 0.5% away from its July 16 all-time high of 5,667.20.
The Dow Jones Industrial Average (^DJI) rose 0.3% on Monday, while the tech-heavy Nasdaq Composite Index (^IXIC) was just above flat after opening slightly lower.
Monday, August 26, 2024, 6:31 a.m. PDT
Nvidia shares start mixed this week as investors focus on the company’s earnings
Stocks were mixed on Monday as investors’ attention shifted to a busy week led by Nvidia’s (NVDA) earnings report.
The S&P 500 (^GSPC) rose about 0.1%, the Dow Jones Industrial Average (^DJI) added about 0.2%, and the tech-heavy Nasdaq Composite Index (^IXIC) was just below flat after the major stock indexes rose on Friday.
The focus this week will undoubtedly be on Nvidia’s performance. The AI chip giant has led the market this year, so a lot is riding on it. Nvidia shares were little changed Monday morning after rising 4.5% on Friday.
Stocks approached new record highs on Friday after Federal Reserve Chairman Jerome Powell made it clear the central bank was ready to start cutting interest rates as soon as September. The benchmark S&P 500 index is down less than 1% from its all-time closing high hit in July.