Stocks were mixed to start the holiday-shortened week as investors looked ahead to this Friday's key inflation update. Despite the diverging price action, one of the three main benchmarks ended the day at a new record closing high.
Specifically, the Nasdaq Composite rose 0.6% to 17,019, its highest finish ever. The S&P 500, meanwhile, eked out a marginal gain at 5,306, and the Dow Jones Industrial Average fell 0.6% to 38,852.
Helping boost the tech-heavy Nasdaq was a major rally in chipmaker Nvidia (NVDA). Indeed, the Magnificent 7 stock soared 7%, gaining more than $180 billion in market value along the way. To put this figure in perspective, it's roughly equivalent to the entire market cap of fellow blue chip stock McDonald's (MCD, -1.8%).
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.
Boosting shares was news that Elon Musk's artificial intelligence startup, xAI, raised $6 billion over the weekend in its latest round of fundraising, valuing the company at $24 billion. However, today's upside is just more of the same for NVDA, which has nearly tripled in the past 12 months.
At $1,140 per share, NVDA is currently beyond the reach of most retail traders looking to buy individual shares. Still, the mega-cap stock is broadly owned in many funds, so it's likely that investors already have exposure to Nvidia. This makes the company's upcoming stock split somewhat of an inconsequential event.
Hess shareholders approve Chevron buyout
In other single-stock news, Chevron (CVX) was one of the best Dow Jones stock today, rising 0.8% after Hess (HES, +0.4%) shareholders approved a $53 billion merger with the oil major.
CVX first announced its intention to buy the oil exploration and production company last October. While today's vote clears one hurdle for Chevron, there are others it faces before its acquisition of Hess can proceed.
First is clearance from the Federal Trade Commission (FTC), which Susquehanna International Group analyst Biju Perincheril believes could happen within the next month or so.
"The last gating item would be arbitration proceedings with Exxon Mobil (XOM, +1.3%), where our understanding is that a final ruling could stretch to the fourth quarter of this year (unless the two parties reach some sort of a settlement earlier)," Perincheril writes in a note to clients.
Consumer confidence ticks higher in May
Meanwhile, on today's economic calendar, data from The Conference Board showed its Consumer Confidence Index rose to 102.0 in May from 97.5 in April.
"Confidence improved in May after three consecutive months of decline," said Dana Peterson, chief economist at The Conference Board, boosted by a strong employment backdrop. "Views of current labor market conditions improved in May, as fewer respondents said jobs were 'hard to get,' which outweighed a slight decline in the number who said jobs were 'plentiful,'" Peterson added.
Fed's favorite inflation measure is due out Friday
Most investors are looking ahead to this Friday's release of the Personal Consumption and Expenditures (PCE) Price Index – the Fed's preferred gauge of inflation that measures consumer spending.
An extension of the stock market's recent rally "could depend on whether investors still feel positive about rate cuts after this week's numbers," says Chris Larkin, managing director of trading and investing at E*TRADE from Morgan Stanley.
Market participants have come to terms with the fact that the first rate cut will come in September at the earliest. However, "more sticky inflation data still has the potential to trigger market volatility," Larkin adds.
Related content
- When Is the Next CPI Report?
- Kiplinger's Earnings Calendar for This Week
- What Will the Stock Market Do as Election Nears?
-
New RMD Rules: Can You Pass This Retirement Distributions Tax Quiz?Quiz Take our RMD quiz to test your retirement tax knowledge. Learn about RMD rules, IRS deadlines, and tax penalties that could shrink your savings.
-
I'm 61 and need $50,000 for home repairs. Should I borrow given today's rates or take a withdrawal from my $950,000 401(k)?We asked financial experts for advice.
-
Headed for the Retirement Red Zone? This Eight-Step Game Plan Helps to Avoid FumblesThese strategies help safeguard your nest egg and ensure long-term financial success during the five years before retirement and the five years after.
-
I'm a Financial Planner: This Is How You Can Get Started With RMDsThe IRS will come knocking for its share of your tax-deferred retirement savings when you hit 73, but planning ahead for RMDs will ensure you're ready.
-
How Will You Replace Your Paycheck in Retirement? A Financial Adviser's Tips on Income PlanningBills don't stop once you retire — and you can't expect your Social Security checks to cover them all. Don't risk running out of money. Instead, make a plan.
-
From Pets to Paintings: The Little Things That Can Cause Big Estate TroubleSentimental items might have little monetary value, but their disposition can cause hurt feelings. Talking about who wants what and labeling items can help.
-
The Clock Is Ticking: Take Advantage of These Retirement Tax Benefits While They LastRecent tax changes, including an extra $6,000 deduction for those 65 and older, present a golden opportunity for retirees to reduce their tax bills.
-
I'm a Financial Adviser: This Is Why Unmarried Same-Sex Couples Need an Estate PlanWhen illness or death occurs within an unmarried same-sex partnership, family members can step in and push the surviving partner out. An estate plan is vital.
-
Stocks Bounce But End With Big Weekly Losses: Stock Market TodayThe stock market rout continued on Friday, but a late-day burst of buying power brought the main indexes off their session lows.
-
Costco Gold Bars Keep Selling Out. Are They a Smart Investment?How Costco's bullion program works, how to get the best deal and whether it makes sense for investors.
