With little in the way of corporate earnings or economic news to guide them, stocks kicked off the trading week initially searching for direction. A fresh batch of worries out of China's fixed income and real estate markets weighed on the major indexes early Monday, but strength in key tech stocks – and one mega-cap name in particular – helped equities build strength through the session.
Monday started on a sour note with reports that China's banking regulator would set up a task force to investigate risks at Zhongzhi Enterprise Group after the private-wealth manager missed payments on investment products sold to high-net-worth clients. Market participants were additionally alarmed by news that Country Garden Holdings – formerly China's largest property developer – is looking to extend the maturity on one of its bonds.
Mostly, Monday was a low-volume affair, with market participants keenly awaiting more significant developments later this week.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The earnings calendar, for example, features a host of major retailers in the days ahead, including Home Depot (HD), Walmart (WMT) and Target (TGT). Traders and investors will mine retailer earnings for information about the health of consumer spending, which economists expect to slow in the months ahead. And as Buy-rated Dow Jones stocks, Home Depot, the nation's largest home improvement chain, and Walmart, the world's largest company by revenue, will be in particular focus.
In upcoming economic news, on Wednesday market participants will perform exegesis on the minutes from the Federal Reserve's July meeting, an event which concluded with a quarter-point rate hike. As of August 14, interest rate traders assigned an 89% probability to the Federal Open Market Committee (FOMC) leaving interest rates unchanged at the next Fed meeting.
"Although most forecasters still predict a recession, we think the runway for a soft landing is in sight," Jan Hatzius, chief economist at Goldman Sachs, wrote in a note to clients on Monday. "U.S. economic activity remains resilient, the labor market rebalancing is making progress, and the recent CPI and PCE data suggest that disinflation may now be running slightly ahead of schedule."
Nvidia stock steals the show
Markets may have gotten off to a slow start Monday, but one massive tech stock took off and never looked back. Shares in Nvidia (NVDA) soared 7.1% to close at $437.53, adding $72 billion in market value in the process. That's a sum greater than the entire market capitalizations of PayPal (PYPL) or FedEx (FDX). The semiconductor firm specializing in chips that power generative artificial intelligence (AI) ended the session with a market cap of $1.081 trillion.
Morgan Stanley analyst Joseph Moore sparked Monday's rally in NVDA stock, telling clients that recent weakness offered a classic opportunity to buy the dip. Moore rates NVDA stock at Overweight (the equivalent of Buy), and calls it a top pick heading into earnings. Nvidia is slated to report quarterly results after the bell on August 23.
NVDA has nearly tripled on a price basis so far this year, adding to its luster as one of the best stocks of the past 30 years. Indeed, a mere $1,000 invested in Nvidia stock two decades ago would be worth a small fortune today.
Thanks to help from Nvidia and semiconductor stocks more broadly, the S&P 500 (+0.6% at 4,489) and the Nasdaq Composite (+1.1% at 13,788) closed higher – a welcome change of pace after both benchmarks posted back-to-back weekly losses. The blue-chip Dow Jones Industrial Average (+0.07% at 35,307) rallied into the close to finish essentially unchanged.
Related Content
-
Stocks Slide to Start September: Stock Market TodaySeasonal trends suggest tough times for the stock market as we round into the end of the third quarter.
-
Here's What You'd Have If You Invested $1,000 Into Sherwin-Williams 20 Years AgoSherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
-
Stocks Slide to Start September: Stock Market Today
Seasonal trends suggest tough times for the stock market as we round into the end of the third quarter.
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have Today
Sherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
-
AI Start-ups Are Rolling in CashThe Kiplinger Letter Investors are plowing record sums of money into artificial intelligence start-ups. Even as sales grow swiftly, losses are piling up for AI firms.
-
If You'd Put $1,000 Into UnitedHealth Group Stock 20 Years Ago, Here's What You'd Have TodayUNH stock was a massive market beater for ages — until it wasn't.
-
S&P 500 Tops 6,500 Even as Nvidia Slips: Stock Market TodayThe world's most valuable company closed lower after earnings, but the S&P 500 managed to notch a new record high.
-
Stocks Edge Higher With Nvidia, Fed in Focus: Stock Market TodayThe AI bellwether reports earnings after today's close, while Wall Street is keeping a cautious eye on President Trump's attacks against the Fed.
-
Coulda, Woulda, Shoulda: Are These 5 Stocks Too Overvalued to Buy Now?Investors worried about missing the boat on overvalued stocks need not fret. These five names, while expensive, are still seeing lots of love from analysts.
-
President Trump Makes Markets Move Again: Stock Market TodayThe White House is moving ahead with plans to reshape the Federal Reserve and to buy shares in more sectors and stocks.
