On Monday, the S&P 500 and Nasdaq Composite posted modest gains as the U.S. stock market found stability after last week’s turbulence. The Nasdaq finished 0.2% higher, while the S&P 500 saw a slight uptick of less than a point, marking their third consecutive session of gains. In contrast, the Dow Jones Industrial Average closed the session down 0.4%.
Trading was subdued on Monday, reflecting a calm before the anticipated release of key economic data later in the week. Last week, major indexes experienced both their largest one-day losses and gains since 2022, contributing to ongoing volatility. The S&P 500 and Nasdaq are currently on four-week losing streaks.
Investor sentiment has been strained by recent economic indicators showing signs of a slowdown, heightening expectations for aggressive interest rate cuts by the Federal Reserve. Market participants are eagerly awaiting the Consumer Price Index data on Wednesday and retail sales figures on Thursday, alongside remarks from Federal Reserve officials.
Large-cap technology stocks, which have been notably volatile recently, showed mixed performance. Nvidia (NVDA), a favorite among AI investors, surged 4.1%, while Apple (AAPL) and Microsoft (MSFT) experienced smaller gains. Conversely, shares of Amazon (AMZN), Alphabet (GOOGL), and Meta Platforms (META) declined.
KeyCorp (KEY) emerged as a notable performer on the S&P 500, rising 9.1% following the announcement that Bank of Nova Scotia (BNS) acquired a 14.9% stake in the bank for $2.8 billion. On the Nasdaq, Super Micro Computer (SMCI) led with a 6.3% increase.
Home Depot (HD) saw a 0.8% drop in its stock price ahead of its quarterly earnings report, scheduled for release before the bell on Tuesday.
In the bond market, the yield on 10-year Treasurys decreased to approximately 3.91% from 3.94% on Friday. The yield had previously fallen below 3.7% following a weaker-than-expected July jobs report, which led to speculation about swift and deep rate cuts by the Fed. However, concerns eased later in the week with more benign weekly jobless claims data.
Gold futures rose by over 1% to above $2,510 per ounce, reflecting ongoing demand amid market uncertainty. Crude oil futures increased by more than 3% due to persistent tensions in the Middle East. Bitcoin traded around $59,000, maintaining a relatively stable position from Friday.
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