Nasdaq climbs 0.6% on Monday, with Nvidia and retail earnings expected to shape market direction
On Monday, the Nasdaq Composite rose 0.6 percent, closing at 18,791.81, while the S&P 500 gained 0.4 percent to settle at 5,893.62.
In contrast, the Dow Jones Industrial Average fell 0.1 percent, dropping 55.39 points to finish at 43,389.60, according to CNBC.
Tesla spearheaded the Nasdaq’s rise, jumping 5.6 percent after a Bloomberg News report revealed that President-elect Donald Trump’s team is exploring ways to reduce regulations on self-driving vehicles.
Apple and Netflix also contributed to the tech-heavy index’s rally, gaining 1.3 percent and 2.8 percent, respectively. Advanced Micro Devices climbed 3 percent.
Investors focused on Nvidia’s upcoming earnings report, scheduled for Wednesday, which could significantly impact markets.
Nvidia, a major player in AI chip production, has drawn attention following a report by The Information citing overheating issues with its Blackwell AI chips when connected to servers. Nvidia shares dipped 1.3 percent in response.
Kim Forrest, chief investment officer at Bokeh Capital Partners, stressed Nvidia’s influence, stating, “The star this week is our friend Nvidia.”
Forrest highlighted that investors are likely waiting for Nvidia’s earnings report to gain clarity.
US Retail earnings, expected this week, are also on investors’ radar, offering insights into the US economy and consumer spending.
FactSet reports that 93 percent of S&P 500 companies have already released earnings, with over 74 percent exceeding expectations and 62 percent surpassing revenue estimates.
The Monday rally followed a challenging week for major indexes, which remain below their post-election highs.
The recent sell-off was driven by Federal Reserve Chair Jerome Powell’s remarks indicating that strong economic growth and a solid labour market have delayed rate cuts.
Powell confirmed the central bank is not “in a hurry” to reduce rates.
In other developments, CVS Health shares rose 5 percent after announcing the addition of four new board members. Super Micro Computer shares soared 16 percent following a Barron’s report that the AI server maker plans to file its annual report to avoid delisting from Nasdaq.
