Stock Market Today: Nvidia Lifts Nasdaq, Boeing Drags on Dow
Tech and communication services stocks outperformed Monday as the Magnificent 7 stocks rallied.
Stocks closed mostly higher Monday with tech outperforming as the Magnificent 7 stocks rallied and Treasury yields retreated.
Investor sentiment is upbeat ahead of a busy week of economic events – one that includes Thursday's release of the December Consumer Price Index (CPI) report – and the start of fourth-quarter earnings season.
"This week's inflation data could determine whether last week's pullback is a blip on the radar or something larger," says Chris Larkin, managing director of trading and investing at E*TRADE from Morgan Stanley. "The S&P 500 started the year with three straight down days for just the ninth time since 1991, and jobs data showed the labor market is still percolating."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
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.
Indeed, stocks snapped a nine-week winning streak last week after that hotter-than-anticipated jobs data has some thinking the Federal Reserve could keep interest rates higher for longer. According to CME Group's FedWatch Tool, futures traders are currently pricing in a 63% chance the Fed will cut rates by a quarter-percentage point at its March meeting.
Nvidia shines in strong day for tech stocks
Technology saw the biggest gains of the 11 S&P 500 sectors Monday, adding 2.5%. Communication services came in a distant second with its 1.6% gain. This impressive price action was helped by solid returns for the Magnificent 7 stocks – the group of mega caps that were market leaders in 2023.
Most notably, Nvidia (NVDA) surged 6.4% after the tech giant unveiled new chips to support generative AI (artificial intelligence) apps on personal computers.
Retreating Treasury yields also gave a boost to rate-sensitive tech and communication services stocks. The yield on the 2-year government note fell 2.7 basis points to 4.364%, while the yield on the 10-year bond dropped 3.2 basis points to 4.01%. (One basis point equals 0.01%.)
Unsurprisingly, the tech-heavy Nasdaq Composite jumped 2.2% to 14,843, while the broader S&P 500 rose 1.4% to 4,763.
Boeing lags after FAA grounds 737 Max 9 planes
The Dow Jones Industrial Average, meanwhile, closed with a more modest 0.6% gain to 37,683 as weakness in Boeing (BA) stock dragged on the 30-stock index.
Shares of BA plunged 8.0% after the Federal Aviation Administration (FAA) temporarily grounded the model of jetliner after a fuselage panel on an Alaska Airlines (ALK, -0.2%) 737 Max 9 blew out during flight.
"Boeing's most recent issue, as tragic as it may have been, does not come as a complete surprise" to us, says Christopher Raite and Peter McNally, analysts at global research firm Third Bridge. "Since the onset of the pandemic, there has been an acute shortage of highly skilled laborers, which can be viewed as a key driver for the myriad of recent issues."
The analysts will be "closely monitoring the situation to discern whether this is an isolated event or if there are additional safety risks associated with the Boeing 737 Max." Earlier today, the FAA said it has approved inspection procedures for the aircraft.
As for the Street's recommendations, Boeing remains one of the best-rated Dow Jones stocks. Of the 30 analysts covering the blue chip tracked by S&P Global Market Intelligence, 20 say it's a Strong Buy, four have it at Buy and six call it a Hold. This works out to a consensus Buy recommendation.
Related content
- Stamp Prices Set To Rise (Again)
- Stocks With the Highest Dividend Yields in the S&P 500
- Walgreens Slashes Dividend by Almost Half
-
Nasdaq Drops 172 Points on MSFT AI Spend: Stock Market TodayMicrosoft, Meta Platforms and a mid-cap energy stock have a lot to say about the state of the AI revolution today.
-
Don't Overpay the IRS: 6 Tax Mistakes That Could Be Raising Your BillTax Tips Is your income tax bill bigger than expected? Here's how you should prepare for next year.
-
Flashback Finance: The Cost of Retiring the Year You Were BornJust like groceries, gas and home prices, the cost of retiring is subject to inflation. Here is a look at what it cost to retire in the year you were born.
-
Nasdaq Drops 172 Points on MSFT AI Spend: Stock Market Today
Microsoft, Meta Platforms and a mid-cap energy stock have a lot to say about the state of the AI revolution today.
-
S&P 500 Tops 7,000, Fed Pauses Rate Cuts: Stock Market TodayInvestors, traders and speculators will probably have to wait until after Jerome Powell steps down for the next Fed rate cut.
-
S&P 500 Hits New High Before Big Tech Earnings, Fed: Stock Market TodayThe tech-heavy Nasdaq also shone in Tuesday's session, while UnitedHealth dragged on the blue-chip Dow Jones Industrial Average.
-
Dow Rises 313 Points to Begin a Big Week: Stock Market TodayThe S&P 500 is within 50 points of crossing 7,000 for the first time, and Papa Dow is lurking just below its own new all-time high.
-
Nasdaq Leads Ahead of Big Tech Earnings: Stock Market TodayPresident Donald Trump is making markets move based on personal and political as well as financial and economic priorities.
-
11 Stock Picks Beyond the Magnificent 7With my Mag-7-Plus strategy, you can own the mega caps individually or in ETFs and add in some smaller tech stocks to benefit from AI and other innovations.
-
Nasdaq Adds 211 Points as Greenland Tensions Ease: Stock Market TodayWall Street continues to cheer easing geopolitical tensions and President Trump's assurances that there will be no new tariffs on Europe.
-
Dow Soars 588 Points as Trump Retreats: Stock Market TodayAnother up and down day ends on high notes for investors, traders, speculators and Greenland.
