Stocks opened lower Monday but the main indexes found their footing by lunchtime and rallied into the close. Technology stocks helped lead the charge, with Autodesk (ADSK) surging on activist investor news. The software maker was hardly the day's only big gainer, though, with several semiconductor stocks notching significant wins.
At the close, the Dow Jones Industrial Average was up 0.5% at 38,778 and the S&P 500 was 0.8% higher at 5,473. The tech-heavy Nasdaq Composite outperformed, gaining 1.0% to 17,857 as several large- and mega-cap stocks popped.
Autodesk, for one, jumped 6.5% on news Starboard Value has built a roughly $500 million stake in the company. According to The Wall Street Journal, the activist investor plans to push for major changes at the software firm, including improving its corporate governance.
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.
Chip stocks rally to start the week
While ADSK stock's rally was notable, the broad upside seen across semiconductor stocks was arguably more impressive.
Micron Technology (MU), for instance, gained 4.6% after Susquehanna International Group analyst Mehdi Hosseini raised his price target on the memory chipmaker to $185 from $143. MU has already more than doubled for the year to date and the new price target represents implied upside of more than 25% to current levels. It also comes ahead of Micron's June 26 appearance on the earnings calendar.
Hosseini says there is increased confidence in pricing trends for DRAM and NAND chips, which should help Micron post a beat-and-raise quarter. "MU has been one of our top long ideas and remains as such," the analyst adds.
Micron's gain created a halo effect for other chip stocks, including Super Micro Computer (SMCI, +5.1%) and Broadcom (AVGO, +5.4%).
Adobe pulls back on profit-taking
Not all tech stocks were higher today, though. Following Friday's red-hot post-earnings rally, Adobe (ADBE) shares finished 1.3% lower today. However, this negative price action was likely just some profit-taking given the Photoshop maker's longer-term prospects.
In its fiscal second-quarter earnings report released Thursday night, Adobe "put artificial intelligence (AI) center stage and is most strongly positioned to benefit from the recent advancements in generative AI," says Stephen Messer, AI expert and co-founder of Collective[i], an enterprise AI company designed to optimize revenue growth.
Messer adds that "it's incredible to see them transforming into an AI-first company via their own models," which include Firefly, and integrate with other AI companies including OpenAI.
The stock market will be closed Wednesday
This week is a short one for market participants. As a reminder, Wednesday is a stock market holiday, with both the equities and bond markets closed in observance of Juneteenth.
Related content
- Here's Why Best Buy Stock Could Rally Another 17%
- Surgeon General Eyes Social Media Stocks With Warning Label Push
- Are Banks Open on Juneteenth in 2024?
-
Are COVID Shots Still Covered By Medicare?Getting the new COVID-19 vaccine covered by Medicare isn't as easy this year as it was in the past. Here's what you need to know before you take a trip to your pharmacy.
-
How Digital Platforms Are Changing the Way You Invest in GoldInvesting in gold is easier than ever thanks to digital platforms. Learn how online tools are lowering costs, increasing transparency and making gold accessible to all investors.
-
How Digital Platforms Are Changing the Way You Invest in Gold
Investing in gold is easier than ever thanks to digital platforms. Learn how online tools are lowering costs, increasing transparency and making gold accessible to all investors.
-
Stocks Rise to Start Fed Week: Stock Market TodayThe Nasdaq Composite and S&P 500 hit new record closing highs as Wall Street awaits the Fed's next rate cut.
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary FormsStandard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
This Is How Life Insurance Can Fund Your Dreams NowBeyond a death benefit, life insurance can provide significant financial value and flexibility through 'living benefits' while you are still alive, helping with expenses like education, business ventures or retirement.
-
Potential Trouble for Retirees: A Wealth Adviser's Guide to the OBBB's Impact on RetirementWhile some provisions might help, others could push you into a higher tax bracket and raise your costs. Be strategic about Roth conversions, charitable donations, estate tax plans and health care expenditures.
-
One Small Step for Your Money, One Giant Leap for RetirementSaving enough for retirement can sound as daunting as walking on the moon. But what would your future look like if you took one small step toward it this year?
-
This Is What You Really Need to Know About Medicare, From a Financial ExpertHealth care costs are a significant retirement expense, and Medicare offers essential but complex coverage that requires careful planning. Here's how to navigate Medicare's various parts, enrollment periods and income-based costs.
-
I'm a Financial Planner: Could Partial Retirement Be the Right Move for You?Many Americans close to retirement are questioning whether they should take the full leap into retirement or continue to work part-time.
