Stocks opened lower Tuesday as market participants took some profits following Monday's monstrous rally. However, the main indexes ended well off their session lows.
The Nasdaq Composite rallied 2.2% to start the week, easily outpacing the still-noteworthy gains of 1.2% for the S&P 500 and 0.6% for the Dow Jones Industrial Average.
Sparking Monday's surge was a rebound in the Magnificent 7 stocks. The majority of these mega-cap stocks continued to climb today, with Nvidia (NVDA, +1.7%) once again leading the way. Apple (AAPL, -0.2%), however, resumed its recent slide, while Tesla (TSLA) slid 2.3% after the electric vehicle maker lowered the driving-range estimates across its models after new government testing rules took effect.
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.
Juniper jumps on Hewlett Packard buyout buzz
Elsewhere in the tech sector, Juniper Networks (JNPR) surged 21.8% after a Wall Street Journal report indicated Hewlett Packard Enterprise (HPE) is nearing a deal to buy the router maker for $13 billion. In addition to making communication services equipment, Juniper also manages Mist AI, a platform it created that combines "artificial intelligence, machine learning and data science techniques to optimize user experiences and simplify operations."
HPE, meanwhile, plunged 8.9% on the news. "We think investors would question the strategic rationale underlying this large of a platform acquisition," says Wells Fargo analyst Aaron Rakers, adding that he expects the company to emphasize how it plans to leverage Mist AI.
As for the main indexes, today's moves were more modest than what was seen Monday. The Nasdaq eked out a 0.1% gain to 14,857, while the S&P 500 (-0.2%) and the Dow (-0.4%) both closed lower.
CPI, earnings season in focus
Investors could be growing more cautious ahead of this week's key inflation update and the start of fourth-quarter earnings season.
The Consumer Price Index (CPI) for December will be released ahead of Thursday's open. "Given the mixed picture from the December employment report, this week's inflation data will be crucial in terms of shaping the Fed's messaging coming out of the January 31 meeting," says Brett Ryan, senior U.S. economist at Deutsche Bank.
The economist expects headline CPI to arrive at 3.3% on an annual basis, helped by a modest decline in gas prices last month. Core CPI, which excludes volatile food and energy prices, should land at 3.9%, according to Ryan. The November CPI report showed headline and core inflation at 3.1% and 4.0%, respectively.
Meanwhile, Q4 earnings season kicks off Friday, with several big banks set to report. "Top-of-mind is the Federal Reserve's rate cycle moving from an expected rate hike to a rate cut regime and its effect on lenders and borrowers," says CFRA Research analyst Kenneth Leon.
Leon singles out JPMorgan Chase (JPM, -0.8%) and Morgan Stanley (MS, -1.6%) as having "the best chance to deliver better-than-expected performance in 2024." JPMorgan is on Friday's earnings calendar, while Morgan Stanley reports ahead of next Tuesday's open.
Related content
- What's Behind the Bitcoin Rally?
- Starbucks 2024 Deals: BOGO Weekends, $3 Drinks, Triple Stars
- What Does a Government Shutdown Mean for Stocks?
-
Don't Waste Your Money on Bad Gifts. Try This Instead.Holiday Happiness These strategies, backed by behavioral finance, can help you find presents that your loved ones will truly enjoy.
-
5 Unique Book-Inspired Trips Across AmericaThere are five great trips to take across America that can immerse you in the culture of your favourite books.
-
Dow Soars 493 Points in Fed-Fueled Bounce: Stock Market TodayNew York Fed President John Williams struck a dovish tone Friday, which eased Wall Street's worries over a potential December pause.
-
Dow Erases 717-Point Gain to End Lower: Stock Market TodayThe main indexes started the day with solid gains, but worries of an AI bubble weighed on stocks into the close.
-
S&P 500 Snaps Losing Streak Ahead of Nvidia Earnings: Stock Market TodayThe Dow Jones Industrial Average also closed higher for the first time in five days, while the Nasdaq Composite notched a win too.
-
Dow Trims Its Loss to 498 Points: Stock Market TodayMarkets are wondering more and more about returns on the enormous amounts of capital hyperscalers are investing in AI.
-
Dow Falls 557 Points to Start NVDA Week: Stock Market TodayThe Oracle of Omaha saw growth and value in certain corners of the stock market during the third quarter.
-
Nvidia Earnings: Updates and Commentary November 2025Nvidia reported fiscal 2026 third-quarter earnings and the leader of the AI revolution delivered the goods once again.
-
Investors Buy the Nasdaq's Big Dip: Stock Market TodayStocks are up and down again to end an up-and-down week ahead of big earnings announcements and the eventual return of regular economic data flow.
-
Dow Dives 797 Points as Government Opens: Stock Market TodayThe process of pricing and re-pricing realities old and new never stops, and next week promises to be at least as exciting as this week.
