The stock market hit new record highs as the S&P 500 and Nasdaq Composite closed at all-time highs on Monday. This surge was driven by the strong performance of several chipmakers, with the S&P 500 rising by 0.1% and the Nasdaq climbing by 0.3%. Meanwhile, the Dow Jones Industrial Average saw a slight decrease of 0.1%.
Key chipmakers that experienced significant gains included Intel (INTC), Broadcom (AVGO), Marvell Technology (MRVL), Advanced Micro Devices (AMD), and Super Micro Computer (SMCI). The positive momentum in the chip sector was fueled by optimism regarding a potential interest rate cut by the Federal Reserve, following favorable jobs data released last Friday.
Investors are eagerly awaiting further updates on the Federal Reserve’s future plans, with Federal Reserve Chair Jerome Powell scheduled to testify before Congressional committees later this week. Market watchers are also looking ahead to the upcoming June inflation data, which will offer insights into whether inflationary pressures are easing. Federal Reserve officials have emphasized the importance of careful consideration before making any decisions regarding interest rates.
The yield on 10-year Treasurys moved up to approximately 4.28%, after seeing a decline last week amidst speculations about potential rate cuts.
Top S&P Movers on Monday
Winners:
- Corning (GLW): The stock surged by 12% after the company raised its earnings outlook for the current quarter due to strong demand for its products used in AI technologies.
- Super Micro Computer (SMCI): Shares jumped by 6.2% as investors showed interest in AI-related stocks. The company’s position in the AI server market, characterized by flexible modular designs, attracted investors.
- Intel (INTC): The stock rose by 6.2% based on an analyst report suggesting that Intel could catch up with its competitors in the tech sector. Expectations were high given Intel’s chips being included in Microsoft’s new AI-powered computers. AMD also saw a 4% increase on similar prospects.
Losers:
- Paramount Global (PARA): Shares declined by 5.3% following the company’s merger agreement with Skydance Media. The merger, which appointed Skydance founder David Ellison as the new CEO, led to fluctuations in the stock price.
- Etsy (ETSY): The stock dropped by 5.3% after announcing restrictions on certain product sales and expressing concerns about slower consumer spending impacting growth.
- Chipotle Mexican Grill (CMG): Shares slipped by 5.2% due to market volatility post a recent stock split. Criticisms related to portion sizes and a study by Wells Fargo pointing out inconsistencies in sizing also contributed to the decline.
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