September 19, 2024

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S&P 500, Nasdaq slump as Nvidia struggles ahead of earnings #NewsUnitedStates

S&P 500, Nasdaq slump as Nvidia struggles ahead of earnings #NewsUnitedStates

CashNews.co

US stocks were mixed in choppy trading on Monday as investors weighed the imminent arrival of interest rate cuts and braced for a busy week dominated by Nvidia’s (NVDA) earnings report.

The Dow Jones Industrial Average (^DJI) erased earlier gains after briefly touching an intraday record. The S&P 500 (^GSPC) slipped 0.5%, while the tech-heavy Nasdaq Composite (^IXIC) sank 1% as shares of chip heavyweight Nvidia dropped.

Tesla (TSLA) stock also fell more than 3%, contributing to losses on the Nasdaq and S&P 500.

Stocks are coming off weekly gains, notched after Chair Jerome Powell made it crystal clear the Fed is ready to pivot to lowering rates in September. The major indexes all gained more than 1% for last week.

Markets quickly moved to price in cuts totaling 1% by the end of 2024. But with only three Fed meetings left in the year — in September, November, and December — and the August jobs report still to come, Wall Street is wondering when and whether a 0.5% cut is likely.

Now the focus is firmly on Nvidia earnings — the marquee event of the week — which will likely determine whether the market mood stays upbeat. If the chipmaker’s results on Wednesday fail to meet sky-high expectations, that could further dent the AI trade, which has powered stock gains, and, in turn, put the market’s rebound from August lows to the test.

Also ahead is a Friday update on Fed policymakers’ preferred inflation gauge, the PCE index print, which is likely to feed into rate-path calculations. Also on decks is a reading on second quarter GDP on Thursday.

Meanwhile, oil prices jumped around 3% amid reports of production shutdowns in Libya and fears of escalating Mideast tensions after Israel and Hezbollah launched strikes. Global benchmark Brent crude futures (BZ=F) rose to $80.08 a barrel, while US benchmark WTI crude futures (CL=F) changed hands at $77.19 a barrel.

Live9 updates

  • Investors are betting the Powell pivot will relieve regional bank woes

    Yahoo Finance’s David Hollerith reports:

    A pivot from Federal Reserve chair Jerome Powell has investors betting that US bank stocks are poised to move higher as lower interest rates are expected to provide much-needed relief to some beleaguered lenders.

    That wager sent an index tracking mid-sized regional banks (^KRX) up 5% Friday, the biggest single day advance for the index in all of 2024. It held those gains Monday.

    That considerable move came after Powell gave markets the all clear signal by saying “the time has come to adjust policy,” setting up the first Fed cut in more than 4 years.

    An index tracking the wider banking sector (^BKX) is now up more than 18% on the year, in line with the performance of the S&P 500 (^GSPC).

    Read more here.

  • Oil prices jump 3% on Middle East tensions, Libya production halt

    Oil prices jumped sharply on Monday amid a halt in Libyan oil production and heightened tensions in the Middle East.

    West Texas Intermediate (CL=F) rose as much as 3% to hover above $77 per barrel, while Brent (BZ=F), the international benchmark price, increased more than 2% to trade above $80 per barrel.

    Over the weekend, Israel implemented an airstrike against Tehran-backed Hezbollah’s rocket launching stations in Lebanon, adding to fears of a broader conflict involving Iran breaking out in the region.

    “The rise in tensions could bring an Iranian military response which, if seen, could slow global oil movements,” Dennis Kissler, senior vice president at BOK Financial, wrote in a note to clients on Monday.

    Read more here.

  • Gold climbs amid geopolitical tensions, expected rate cut

    Gold prices neared record highs on Monday as investors flocked toward the precious metal amid heightened geopolitical tensions and the expectation of a Fed rate cut in September.

    Gold futures (GC=F) for December delivery climbed above $2,552 per ounce.

    The precious metal is up more than 23% year to date, making it one of the best-performing commodities of the year.

  • Tech stocks lag as Nvidia, Broadcom, Tesla fall

    Tech stocks lagged on Monday, dragging on the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC).

    Shares of Nvidia (NVDA) fell more than 1.5% by 12:30 p.m. ET, though they were off their session lows. Semiconductor Broadcom (AVGO) dropped more than 3% while EV maker Tesla (TSLA) also fell more than 2%.

    Meanwhile, Materials (XLP), Utilities (XLU), and Energy (XLE) stocks gained, helping lift the Dow Jones Industrial Average (^DJI) higher.

    Tech lagged on Monday while Materials, Utilities and Energy stocks gained.Tech lagged on Monday while Materials, Utilities and Energy stocks gained.

    Tech lagged on Monday while Materials, Utilities and Energy stocks gained.

  • McLaren CEO looks to follow Ferrari’s blueprint for success — but with ‘no arrogance’

    Yahoo Finance’s Pras Subramanian reports:

    CARMEL, Calif. — McLaren CEO Michael Leiters believes that the British luxury supercar maker can succeed much like Ferrari has — but in a somewhat different way.

    “We have one element in our brand, and it’s belonging,” Leiters, who has been at the helm of McLaren for two years after eight years as Ferrari’s chief technology officer, said in an interview with Yahoo Finance during Monterey Car Week. “We want to have people here. … We speak with everybody — no arrogance.”

    That could be read as a not-so-veiled swipe at Ferrari, given that the Italian luxury sports car manufacturer is notorious for secrecy, invite-only events, and only selling new vehicles to current or favored customers.

    Read more here.

  • Dow jumps 200 points while Nasdaq falls, Nvidia declines 2%

    The markets diverged on Monday as the Dow Jones Industrial Average (^DJI) rose as much as over 200 points to touch a fresh intraday record.

    The S&P 500 (^GSPC) erased earlier gains to fall 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) dropped more than 1%, led by a fall in shares of Nvidia (NVDA).

    The AI chip heavyweight will report quarterly results this Wednesday after the market close.

    EV giant Tesla (TSLA) also fell more than 3%, weighing on the S&P 500 and Nasdaq.

  • Dow gains 200 points, touches intraday record

    The Dow Jones Industrial Average (^DJI) rose more than 200 points, or 0.5%, on Monday morning, touching a new intraday record of 41,394.10.

    Energy and Materials led the gains on Monday. Meanwhile, Technology stocks lagged, with the tech-heavy Nasdaq Composite (^IXIC) slipping as much as 0.7% while the S&P 500 (^GSPC) fell slightly.

  • S&P 500 inches toward record high

    The S&P 500 (^GSPC) rose 0.3% on Monday, inching closer to its July record highs. The index was less than 0.5% away from its July 16 all-time record close of 5,667.20.

    The Dow Jones Industrial Average (^DJI) rose 0.3% on Monday. The tech-heavy Nasdaq Composite (^IXIC) drifted just above the flat line after opening slightly lower.

  • Stocks open mixed as investors turn focus on Nvidia earnings this week

    Stocks traded mixed on Monday as investors turned their focus to a busy week spearheaded by Nvidia’s (NVDA) earnings report.

    The S&P 500 (^GSPC) rose roughly 0.1%, while the Dow Jones Industrial Average (^DJI) added roughly 0.2%. The tech-heavy Nasdaq Composite (^IXIC) slipped just below the flat line after the major indexes rallied on Friday.

    The focus this week is firmly on Nvidia earnings. A lot is riding on those results since the AI chip heavyweight has been a major driver of the markets this year. Nvidia stock was little changed on Monday morning following a 4.5% gain on Friday.

    Stocks neared fresh record highs on Friday after Fed Chair Jerome Powell made it crystal clear the central bank is ready to pivot to lowering rates in September. The benchmark S&P 500 index is less than 1% away from topping the all-time closing high set in July.

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