Highs not previously reached were attained in the stock market, with the S&P 500 and Nasdaq Composite ending Monday at their highest levels ever. This upward trend was guided by the strong showing of several semiconductor producers, with the S&P 500 inching up by 0.1% and the Nasdaq soaring by 0.3%. Conversely, the Dow Jones Industrial Average experienced a slight decrease of 0.1%.
Key semiconductor manufacturers that saw significant increases included Intel (INTC), Broadcom (AVGO), Marvell Technology (MRVL), Advanced Micro Devices (AMD), and Super Micro Computer (SMCI). The positive momentum in the semiconductor industry was driven by optimistic expectations related to a potential decrease in interest rates by the Federal Reserve, following the promising employment data released the prior Friday.
Market participants are eagerly awaiting more information on the Federal Reserve’s upcoming strategies, with Federal Reserve Chair Jerome Powell scheduled to deliver testimony before Congressional committees later this week. Market observers are also anticipating the June inflation data, which will offer insights into whether inflationary pressures are diminishing. Federal Reserve officials have emphasized the importance of careful consideration before making any interest rate decisions.
The yield on 10-year Treasurys increased to around 4.28%, after a decline last week amid speculations about possible rate cuts.
Standout Performers in the S&P on Monday
Advancers:
- Corning (GLW): The stock surged by 12% after the company revised its earnings forecast for the current quarter due to increased demand for its products used in AI technologies.
- Super Micro Computer (SMCI): Shares skyrocketed by 6.2% as investors showed interest in AI-focused stocks. The company’s position in the AI server sector, distinguished by its flexible modular designs, attracted investors.
- Intel (INTC): The stock climbed by 6.2% based on an analyst’s analysis suggesting that Intel could close the gap with its rivals in the tech industry. Expectations were positive, given Intel’s chips being incorporated into Microsoft’s new AI-driven computers. AMD also saw a 4% increase on similar prospects.
Decliners:
- Paramount Global (PARA): Shares fell by 5.3% after the company’s merger agreement with Skydance Media. The merger, which appointed Skydance founder David Ellison as the new CEO, led to fluctuations in the stock price.
- Etsy (ETSY): The stock dropped by 5.3% after revealing restrictions on certain product sales and expressing concerns about slow consumer spending impacting growth.
- Chipotle Mexican Grill (CMG): Shares decreased by 5.2% due to market volatility following a recent stock split. Criticisms regarding portion sizes and a Wells Fargo report highlighting inconsistencies in sizing also contributed to the decline.
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