S&P 500 and Nasdaq hit record highs as Nvidia surges By Reuters

By Noel Randewich and Ankika Biswas

(Reuters) – The Nasdaq index hit a record high on Monday, led by a rally in chip stocks, as investors awaited fresh inflation data, comments from Federal Reserve Chairman Jerome Powell and the start of quarterly earnings season.

Nvidia (NASDAQ:) jumped 2.5%, while Super Micro Computer (NASDAQ:), which makes AI-optimized servers using Nvidia’s chips, jumped nearly 9%. Intel (NASDAQ:) jumped nearly 6%.

The Nasdaq rose to a record high, and the S&P 500 also rose modestly to a record high.

Traders will check consumer price data due on Thursday and producer price data due on Friday to assess the Fed’s progress in fighting inflation.

Investors worry that waiting too long to cut interest rates could hurt the labor market and tip the economy into a recession. They will be closely watching Powell’s semiannual testimony before the US Senate and House committees on Tuesday and Wednesday.

“What investors want to hear is a dovish stance and an acknowledgment that two-way risks are more evenly balanced today, particularly with regard to the labor market,” said Ross Mayfield, investment strategy analyst at Baird.

The non-farm payrolls report released on Friday showed that US job growth slowed in June, raising expectations for an interest rate cut as early as September – the latest data pointing to weakness in labor market conditions.

According to CME’s FedWatch, traders now see a more than 75% chance of interest rates being cut by at least 25 basis points by September, up from 60% last week.

Citigroup, JPMorgan Chase (NYSE:) and Wells Fargo are set to kick off Wall Street’s second-quarter earnings season on Friday. Citigroup shares rose 1.1%, while Wells Fargo shares fell 1.4%.

Analysts expect S&P 500 companies’ combined earnings per share to rise by an average of 10.1% in the second quarter, compared with an 8.2% increase in the first quarter, according to LSEG I/B/E/S.

The S&P 500 was last up 0.06% at 5,570.68.

The Nasdaq rose 0.20% to 18,389.54 points, while the Nifty fell 0.08% to 39,345.56 points.

Six of the 11 S&P 500 sector indexes rose, with information technology leading the way, gaining 0.59%, followed by materials, which added 0.23%. Consumer services fell nearly 1%, dragged lower by a 1.8% drop in Meta Platforms (NASDAQ:).

Shares of Paramount Global fell more than 3% after it agreed to a merger with Skydance Media on Sunday, marking a new chapter for one of Hollywood’s oldest studios.

Aircraft maker Boeing (NYSE:) gained 0.3% after it agreed to plead guilty to a criminal fraud conspiracy charge and pay a $243.6 million fine to resolve the U.S. Justice Department’s investigation into two deadly 737 MAX crashes.

Rising issues in the S&P 500 outnumbered falling issues by a 1.3-to-1 ratio.

The S&P 500 recorded 20 new highs and 7 new lows; the Nasdaq recorded 69 new highs and 90 new lows.


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