The tech-heavy Nasdaq (QQQ) soared to a record high on Monday, driven by gains in chipmakers, as investors eagerly await Nvidia's quarterly results and the Federal Reserve's policy meeting minutes this week. Buoyed by strong corporate earnings and softer-than-expected inflation data, the three major U.S. indexes marked their fourth consecutive week of gains last Friday. The S&P 500 (SPY) and Nasdaq both touched all-time highs last week, with the Dow Jones Industrial Average (DIA) closing above the 40,000 level for the first time.
Nvidia shares jumped 2.8%, with at least three brokerages raising the stock's price target ahead of its results on Wednesday. Investors are looking for evidence that the AI chip leader can sustain its explosive growth and outperform rivals. Micron Technology (MU) also saw a significant boost, climbing 4% after Morgan Stanley (MS) upgraded the memory chip maker to "equal-weight" from "underweight," contributing to the outperformance of the information technology sector within the S&P 500.
Market Overview:- U.S. stocks climb, with the Nasdaq hitting a record high on the back of strong chipmaker performance.
- Investor optimism persists after a week of gains fueled by positive earnings and inflation data.
- Nvidia (NVDA) earnings on Wednesday and the Fed meeting minutes are key events to watch.
- Upbeat expectations surround Nvidia's growth potential in the AI sector.
- Investors scrutinize Fed commentary for clues about potential rate cuts.
- Nvidia's earnings results could influence the stock's trajectory and broader markt sentiment.
- The Fed meeting minutes might offer insights into the central bank's future monetary policy decisions.
- Economic data releases throughout the week will provide additional market direction.
Market sentiment remains positive, but some caution is advised as investors anticipate the Fed's meeting minutes for clues on the timing of potential interest rate cuts. Traders currently expect a 76.2% chance of at least a 25-basis-point rate cut in September, according to the CME's (CME) FedWatch Tool. Comments from Fed officials, including Atlanta Fed President Raphael Bostic and Vice Chair for Supervision Michael Barr, reflect ongoing concerns about inflation and the central bank's commitment to its 2% target.
In other market news, Norwegian Cruise Line (NCLH) surged 6% after raising its annual profit forecast, lifting shares of peer Carnival Corp by 4%. Johnson Controls International rose 3% following a report that activist investor Elliott Investment Management had built a $1 billion position in the company. Deutsche Bank (DB) raised its year-end S&P 500 target to 5,500 from 5,100 points, the highest among major brokerages, citing strong corporate earnings.
