NEW YORK (AP) — U.S. stocks were on track to hit more records in quiet trading Monday ahead of a quiet week with holiday-shortened trading.
The S&P 500 was up 0.2% in midday trading and is on track to close above the all-time high it set on Thursday. The Dow Jones Industrial Average was up 12 points, or less than 0.1%, as of 11:35 a.m. Eastern time. The Nasdaq Composite was 0.1% above its all-time high.
Autodesk Inc. soared 4.5%, the market’s biggest gainer, after an investment firm said it planned to postpone the company’s annual meeting and nominate new directors. Starboard Value also said Autodesk’s financial performance had not been as strong as expected. Autodesk responded by saying it would consider Starboard’s proposal, but added that “they have a clear strategy and it’s working.”
Chipmaker Broadcom Inc rose 3.4 percent, adding to gains from last week, after it reported better-than-expected profit and said it would implement a 10-for-1 stock split to make its shares more affordable. NVIDIAThe company has become a symbol of Wall Street’s artificial intelligence technology frenzy and is the latest to undergo a similar stock split.
Broadcom was one of the strongest drivers of the S&P 500’s gains, along with Apple’s 1.8% gain and Tesla’s 4.5% gain.
These are helping to offset weakness in the bond market from rising Treasury yields, which rose more than expected last week. Reports upon inflation The Federal Reserve Board Lowering interest rates It’s scheduled for later this year.
There are few major U.S. economic reports this week, other than an update on customer spending at U.S. retail stores on Tuesday and a preliminary outlook for U.S. business activity on Friday. Markets are closed on Wednesday for Juneteenth Day.
New York state manufacturing is still shrinking, but not by as much as economists expected, according to a report Monday. Manufacturing has been one of the sectors hardest hit by the Federal Reserve’s eagerness to keep its key interest rates at their highest levels in more than two decades.
The Fed wants to keep interest rates high long enough to slow the economy and tame high inflation, but it also wants to cut rates to reverse momentum before the slowdown turns into a painful recession.
expensive Interest level That tends to hurt all kinds of investments, with some sectors hitting the hardest: Real estate stocks, for example, could struggle if high interest rates make things tough for the industry and drive income-seeking investors out of real estate and into fixed-income stocks.
S&P 500 real estate investment trusts fell 0.9%, the biggest drop among the index’s 11 sectors, followed by utilities, down 0.7%, whose larger dividend payouts tend to dampen buyer interest when bond yields rise.
In the bond market, the yield on the 10-year Treasury note rose to 4.29% from Friday’s close of 4.22%. The yield on the two-year note, which more accurately reflects the Fed’s expectations, rose less, rising to 4.75% from 4.71%.
In overseas stock markets, European stock indexes showed some stability. Last week’s lossFrance’s CAC 40 index rose 0.9 percent after suffering its worst week in two years last week on fears that a potential defeat for the president’s centrist party would lead to a surge in the country’s debt.
European shares rose slightly while Asian shares fell. Japan’s Nikkei index fell 1.8%.
___
AP Business Writer Elaine Kurtenbach contributed.
