U.S. stock indexes were mixed, with the Dow Jones Industrial Average closing at its highest in one month and the Nasdaq dropping. Reuters
Wall Street ended with mixed performance on Monday, as gains in industrial stocks lifted the Dow Jones Industrial Average, while losses in major technology stocks weighed on the Nasdaq Composite Index.
The Dow Jones Industrial Average rose 0.7% to close at a one-month high of 39,411.21, boosted by strong performance from oil and gas and financial stocks. But the broad-based S&P 500 fell 0.3% to 5,447.87, dragged down by losses in some technology stocks. The tech-heavy Nasdaq Composite Index fared worse, dropping 1.1% to 17,496.82.
Market movers
Among the notable gainers, Exxon Mobil surged 3 percent and oilfield services provider SLB rose 4 percent, helped by strong crude oil prices that are nearing their highest levels since April.
Financial stocks also fared well, with JPMorgan Chase rising 1.3% and Wells Fargo rising 1.6% ahead of the results of the Federal Reserve’s stress tests later in the week.
But the trade saw big drops in high-profile tech stocks, especially Nvidia, which plunged 6.7% for the third straight trading day. Nvidia, known for its sharp rise from the second half of 2022, has faced headwinds in the market recently.
Rotation Portfolio
Investors have been rotating their portfolios out of artificial intelligence stocks and into underperforming sectors on the prospect of the Federal Reserve cutting interest rates later this year.
Market participants will be focused on Friday’s release of the Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred key inflation gauge. Expectations of easing inflationary pressures are influencing market expectations for rate cuts. According to LSEG’s FedWatch tool, the chances of a 25 basis points cut in September are priced at 61%, in contrast to the Fed’s latest forecast, which suggests a cut is likely in December.
In the bond market, Treasury yields edged lower, with the 10-year Treasury yield falling to 4.23% from 4.26% at Friday’s close.
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