Nasdaq Reaches New Record Closing High But Dow Gives Back Ground
May 20 2024 - 4:26PM
IH Market News
After an early advance, the major U.S. stock indexes moved in
opposite directions over the course of the trading session on
Monday.
The tech-heavy Nasdaq added to last week’s strong gains,
reaching a new record closing high, while the Dow gave back ground
after closing above 40,000 for the first time last Friday.
The Nasdaq ended the day up 108.91 points or 0.7 percent at
16,794.87. The S&P 500 also crept up 4.86 points or 0.1 percent
to 5,308.13, but the Dow fell 196.82 points or 0.5 percent at
39,806.77.
The advance by the Nasdaq reflected strength in the tech sector,
with semiconductor stocks turning in a particularly strong
performance on the day.
Reflecting the strength among semiconductor stocks, the
Philadelphia Semiconductor Index jumped by 2.2 percent to a
two-month closing high.
Chipmaker Micron Technology (NASDAQ:MU) helped lead the way
higher, surging by 3.0 percent after Morgan Stanley upgraded its
rating on the company’s stock to Equal Weight from Underweight.
Ai darling Nvidia (NASDAQ:NVDA) also shot up by 2.5 percent
ahead of the release of its fiscal first quarter results after the
close of trading on Wednesday.
Gold stocks also saw notable strength on the day, as the price
of the precious metal reached a new record high, while banking
stocks and telecom stocks moved to the downside.
A steep drop by shares of JPMorgan Chase (NYSE:JPM) weighed on
the Dow, with the financial giant tumbling by 4.5 percent after
ending last Friday’s trading at a record closing high.
The pullback by JPMorgan came after CEO Jamie Dimon implied
during remarks at the company’s annual investor day that he may
retire in fewer than five years.
Overall trading remained somewhat subdued, however, as traders
seemed reluctant to make more significant bets amid a lack of major
U.S. economic data on the day.
The economic calendar remains relatively quiet throughout the
week, although reports on durable goods orders and new and existing
home sales may attract some attention along with the minutes of the
latest Fed meeting.
Other Markets
In overseas trading, stock markets across the Asia-Pacific
region moved mostly higher during trading on Monday. Japan’s Nikkei
225 Index advanced by 0.7 percent, while China’s Shanghai Composite
Index rose by 0.5 percent.
The major European markets also moved to the upside on the day.
While the U.K.’s FTSE 100 Index inched up by 0.1 percent, the
German DAX Index and the French CAC 40 Index both climbed by 0.4
percent.
In the bond market, treasuries saw modest weakness, extending
the pullback seen over the two previous sessions. As a result, the
yield on the benchmark ten-year note, which moves opposite of its
price, inched up 1.7 basis points to 4.437 percent.
Looking Ahead
Amid another quiet day in terms of U.S. economic data, trading
on Tuesday may be impacted by reaction to remarks by several Fed
officials.
SOURCE: RTTNEWS
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