U.S. stocks rose on Monday, looking set to resume a rally fuelled by messages that interest rate cuts are imminent from the Federal Reserve, ahead of a busy week dominated by an earnings report from NVIDIA (NVDA).
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) fell 0.1% in a week when all the major stock indexes rose more than 1%.
Stocks have risen to new record highs after Chairman Jerome Powell said the Fed is ready to start cutting interest rates as soon as September, and the benchmark S&P 500 is less than 1% away from its all-time closing high hit in July.
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 nearly 3% on reports of production halts in Libya and concerns about rising tensions in the Middle East following attacks by both Israel and Hezbollah. Global benchmark Brent crude futures (BZ=F) rose to $81.81 a barrel, while U.S. benchmark WTI crude futures (CL=F) were trading at $76.90 a barrel.
Live2 Update
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 traded mixed on Monday as investors turned their attention 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.