S&P 500, Nasdaq slump as Nvidia struggles ahead of earnings

By Investor Empires On Aug 26, 2024

U.S. stocks were mixed in choppy trading on Monday, with technology leading the declines as investors assessed the imminent arrival of interest rate cuts and prepared for a busy week dominated by Nvidia’s (NVDA) earnings report.

The Dow Jones Industrial Average (^DJI) briefly hit fresh intraday highs before paring gains to hover above the equator. The S&P 500 (^GSPC) fell 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) fell 1% as shares of chip giant Nvidia Corp. fell.

Tesla (TSLA) stock also fell 3%, contributing to losses on the Nasdaq and S&P 500.

Stocks are headed lower after a weekly gain, after Federal Reserve Chairman Jerome Powell indicated the bank is ready to shift to cutting interest rates in September. All major indexes posted gains of more than 1% over the past week.

Markets have moved quickly to price in a total of 1% cuts by the end of 2024. But with just three Fed meetings left in the year — in September, November and December — and the August jobs report still to come, Wall Street is wondering when and if a 0.5% rate cut is likely.

Attention is now firmly focused on Nvidia’s earnings — the big story of the week — which will likely determine whether the market mood remains positive. If the chipmaker’s results on Wednesday fail to meet sky-high expectations, it could further hurt the AI trade that has fueled the stock’s gains — and put the market’s recovery from its August lows at risk.

Also on Friday is an update on the Fed’s preferred inflation measure, which will likely help determine the path of interest rates. On Thursday, we have the second-quarter GDP reading.

Meanwhile, oil prices jumped about 3% amid reports of production disruptions in Libya and concerns about rising tensions in the Middle East after Israel and Hezbollah launched attacks. Global benchmark Brent crude futures (BZ=F) rose to $80.08 a barrel, while U.S. West Texas Intermediate (CL=F) futures were trading at $77.19 a barrel.

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Monday, August 26, 2024 at 12:39 PM EST

Technology stocks fell as Nvidia, Broadcom and Tesla shares fell.

Technology stocks fell on Monday, weighing on the S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC).

Shares of Nvidia (NVDA) were down more than 1.5% by 12:30 p.m. ET, though they were off session lows. Semiconductor company Broadcom (AVGO) was down more than 3%, while electric-car maker Tesla (TSLA) was also down more than 2%.

Meanwhile, materials (XLP), utilities (XLU) and energy (XLE) stocks posted gains, helping lift the Dow Jones Industrial Average (^DJI) to higher levels.

The technology sector lagged on Monday while materials, utilities and energy stocks gained.
Monday, August 26, 2024 at 11:30 AM EST

McLaren CEO looks to follow Ferrari model for success – but ‘without arrogance’

Yahoo Finance’s Prasad Subramanian says in his report:

CARMEL, Calif. — McLaren CEO Michael Leiters believes the British luxury carmaker can succeed as Ferrari has — but in a slightly different way.

“We have one element in our brand, and that is belonging,” Leiters, who took over McLaren for two years after eight years as Ferrari’s chief technology officer, told Yahoo Finance in an interview during Monterey Car Week. “We want to have people here… talking to everyone — without arrogance.”

This could be read as an indirect attack on Ferrari, since the Italian luxury sports car maker is notorious for its secrecy, holding invite-only events, and selling new vehicles only to existing or favored customers.

Read more here.
Monday, August 26, 2024 at 10:49 AM EST

Dow Jones jumps 200 points, Nasdaq declines, Nvidia falls 2%

Markets were mixed on Monday as the Dow Jones Industrial Average (^DJI) rose more than 200 points to hit a new intraday record.

The S&P 500 (^GSPC) erased earlier gains to fall 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) fell more than 1%, led by a decline in Nvidia (NVDA) shares.

The AI chip giant will report its quarterly results next Wednesday after the market closes.

Electric car giant Tesla (TSLA) also fell more than 3%, weighing on the S&P 500 and Nasdaq.
Monday, August 26, 2024 at 10:31 AM EST

Dow Jones gains 200 points, hits record intraday high

The Dow Jones Industrial Average (^DJI) rose more than 200 points, or 0.5%, Monday morning, hitting a new intraday record high of 41,394.10.

Energy and materials sectors led gains on Monday. Meanwhile, technology stocks lagged, with the tech-dominated Nasdaq Composite (^IXIC) down 0.7% while the S&P 500 (^GSPC) was down slightly.
Monday, August 26, 2024 at 9:42 AM EST

S&P 500 Index Rises, Heading for Record High

The Standard & Poor’s 500 Index (^GSPC) rose 0.3% on Monday, closing in on a record high set in July. The index was less than 0.5% away from its all-time closing high of 5,667.20 set on July 16.

The Dow Jones Industrial Average (^DJI) rose 0.3% on Monday. The technology-heavy Nasdaq Composite (^IXIC) fell just above the line after opening slightly lower.
Monday, August 26, 2024 at 9:31 AM EST

Stock Markets Open Mixed as Investors Shift Focus to Nvidia Earnings This Week

Stocks were mixed on Monday as investors turned their focus to a busy week led by Nvidia’s (NVDA) earnings report.

The S&P 500 (^GSPC) rose about 0.1%, while the Dow Jones Industrial Average (^DJI) added about 0.2%. The technology-dominated Nasdaq Composite (^IXIC) fell below the flat line after major indexes rose on Friday.

This week, focus is on Nvidia’s earnings. Much is riding on those results, as the AI chip giant has been a major market mover this year. Nvidia’s stock was little changed Monday morning after rising 4.5% on Friday.

Stocks approached fresh record highs on Friday after Federal Reserve Chairman Jerome Powell indicated the central bank is prepared to shift to lowering interest rates in September. The benchmark S&P 500 is less than 1% away from its all-time closing high set in July.