US Tech Stocks Gains: Dow, S&P 500, Nasdaq Rise

The Dow Jones Industrial Average experienced a slight increase, while the S&P 500 and Nasdaq Composite saw increases of 0.5% and 0.8%, respectively. The major indexes, which began the week close to all-time highs, fell on Monday as expectations for significant interest rate reduction waned in the wake of last week’s excellent jobs report and oil prices spiked over worries about tensions in the Middle East.

Early on Tuesday, all large-cap tech stocks were up, with AI chipmaker Nvidia (NVDA) leading the increase with a gain of around 2%. Additionally rising were Broadcom (AVGO), Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Meta Platforms (META), Alphabet (GOOGL), and Meta Platforms (META). Yesterday, Nvidia overtook Microsoft to claim the title of second-largest business in terms of market capitalisation.

Even though PepsiCo (PEP) reported quarterly results that fell short of forecasts, the company’s shares were up roughly 0.5%. When the major banks release their results later this week, the earnings reporting season really gets going.

A 3% decline in crude oil futures reversed some of the gains seen in the previous week as worries about the potential danger to the world’s oil supply from an intensifying Middle East conflict increased. A number of businesses that had risen in tandem with the recent increases in oil prices, including Halliburton (HAL), Marathon Petroleum (MPC), and Phillips 66 (PSX), saw significant declines, bringing the S&P 500 energy sector down by almost 3%.

Tuesday has a light economic data schedule, but later in the week, with the release of carefully anticipated inflation data and the most recent consumer sentiment measurement, things get really busy. Aside from searching for more evidence that the economy is solidifying, investors will be intently observing the figures for any indications regarding the Federal Reserve’s potential aggressiveness in reducing interest rates. Last month, the Federal Reserve lowered its benchmark fed funds rate for the first time in four years.

Fed fund futures trading data shows that market participants now expect the Fed will likely make two quarter-percentage-point decreases in the benchmark rate before the end of the year, following the solid jobs report on Friday. Markets were pricing in the possibility that the central bank might declare a half-point decrease at the Fed’s upcoming policy meeting in November, in addition to a cut in December, prior to the jobs report.

The 10-year Treasury yield increased to 4.05% on Monday, after crossing the 4% line for the first time in the previous two months as investor expectations for significant rate reduction waned.

While bitcoin fell almost 1% to about $62,800, gold futures were down marginally at about $2,660 an ounce.

FAQs

How have the main U.S. stock indexes been doing lately?

• Although the S&P 500 and Nasdaq Composite increased by 0.5% and 0.8%, respectively, the Dow Jones Industrial Average witnessed a minor uptick.

Which tech large-cap stocks experienced gains on Tuesday?

• On Tuesday, all of the main large-cap tech stocks saw gains, with Nvidia (NVDA) rising by around 2%. A few of other rising equities included Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Microsoft (MSFT), Broadcom (AVGO), and Meta Platforms (META).

What effect did crude prices have on the market?

• Crude oil futures experienced a 3% decline, which negated some of the gains from the previous week. The S&P 500 energy sector experienced a nearly 3% decline as a result of this decline, which affected energy companies such as Halliburton (HAL), Marathon Petroleum (MPC), and Phillips 66 (PSX).