Markets

Stock Market Today: Technology Sizzles, But Gold Steals the Show

The Nasdaq had a big Monday on the back of mega-cap tech and chip stocks, but gold's new highs were the talk of Wall Street.

Tech stocks took the lead Monday ahead of what will be a busy week for the sector, but most of the day's attention went to gold prices, which settled at new all-time highs.

"This is the busiest week for the 2Q earnings season," Credit Suisse analysts write, "with over 180 companies representing 43% of the S&P 500’s market cap reporting results, including 4 of the top 5 biggest names."

That refers to Apple (AAPL, +2.4%), Amazon.com (AMZN, +1.5%) and Facebook (FB, +1.2%), which all advanced solidly on Monday, and which we preview in this week's earnings calendar. Google parent Alphabet (GOOGL, +1.4%) also will reveal its quarterly results this week.

Investors remain hopeful for new federal stimulus measures, which are expected to be hashed out this week. Senate Republicans plan to release their proposal today, and while it's expected to include $1,200 checks once more, it's also expected to reduce the weekly unemployment "bonus" from $600 to $200.

A strong day for the mega-cap tech stocks above, as well as chipmakers not named Intel (INTC, -2.0%) – including Qualcomm (QCOM, +4.3%), Lam Research (LRCX, +3.6%) and Applied Materials (AMAT, +3.9%) – led the Nasdaq Composite 1.7% higher to 10,536. INTC stock continued to slump in the wake of last week's announcement that its 7-nanometer chips would be delayed by half a year. 

The Dow Jones Industrial Average improved a more modest 0.4% to close at 26,584, and the S&P 500 improved by 0.7% to 3,239. The small-cap Russell 2000 gained 1.1% to 1,483.

Gold Is the Star of the Show

Gold futures jumped 1.8% to $1,931 an ounce, its highest settlement in history, to continue a rip-roaring 26% year-to-date rally in the yellow metal.

And gold could continue running, thanks to the possibility for further declines in the U.S. dollar, higher inflation and lower Treasury yields – factors that lead Deutsche Bank analyst Michael Hsueh to write that "the gold rally is far from over" in a recent note.

"Within this bull market cycle, it is only a modest stretch to envision fundamentals falling into place for USD 2,000/oz to be within reach," Hsueh writes. "In fact, we think fundamentals will support a range between USD 2,000-2,100/oz, well before the market begins to anticipate Fed tightening."

If you're new to gold investing, check out our primer of facts you should know about the metal. If you're ready to invest in gold, funds that invest in actual physical bullion or mining companies are your easiest options. You can use ETFs to buy silver, too, which is having itself a ball at roughly 36% YTD gains that have brought it to multiyear highs.

But if you only have eyes for gold, consider these seven funds that easily (and typically cheaply) let investors leverage the world's favorite precious metal.

Kyle Woodley was long AMZN and FB as of this writing.

Most Popular

Will Your Stimulus Check Increase Your Tax on Social Security Benefits?
Coronavirus and Your Money

Will Your Stimulus Check Increase Your Tax on Social Security Benefits?

The answer to this question comes down to whether your stimulus check increases your "provisional income."
March 1, 2021
Third Stimulus Checks Are One Step Closer to Reality – How Much Will You Get?
Coronavirus and Your Money

Third Stimulus Checks Are One Step Closer to Reality – How Much Will You Get?

The House passed President Biden's $1.9 trillion stimulus package. While the bill faces hurdles in the Senate, the provisions authorizing another roun…
February 27, 2021
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021

Recommended

Stock Market Today 3/3/21: Growth Stocks Gashed
Stock Market Today

Stock Market Today 3/3/21: Growth Stocks Gashed

A stingier stimulus measure, conflicting news on the COVID front and upward creep in interest rates helped send growthier stocks to the cleaners Wedne…
March 3, 2021
Hot Upcoming IPOs to Watch For in 2021
Kiplinger's Investing Outlook

Hot Upcoming IPOs to Watch For in 2021

The most exciting initial public offerings (IPOs) expected in 2021 range from a crypto exchange to an Amazon-backed EV play to a popular grocery-deliv…
March 3, 2021
Stock Market Today 3/2/21: Stocks Regress After Monday's Romp
Stock Market Today

Stock Market Today 3/2/21: Stocks Regress After Monday's Romp

Monday's euphoric stock-buying binge was put in check, with the major indices giving back some gains on a slow-news Tuesday.
March 2, 2021
7 5G Stocks With More Catalysts Than 5G
Technology

7 5G Stocks With More Catalysts Than 5G

Investors betting on next-generation wireless networking technology need to find 5G stocks that have additional growth drivers.
March 2, 2021