Just as tech got a big boost encouraged by optimism over Nvidia, the Dow got slammed pretty hard, down a good 250 points by noon, then beginning a steady recovery the rest of the day to close with only a modest loss as investors await Powell’s remarks from Jackson Hole this Friday. But Nvidia was the savior for the day not only getting a personal boost of a whopping 8.5% but lifting the entire tech index by 2.8%. But as today’s expert put it, “Nvidia is considered the brand for AI, so the question is, can they deliver?” Volume was below average at 9.75 billion.
Nasdaq rallies with Nvidia, tech shares;
investors look toward Jackson Hole
Mon August 21, 2023 4:34 PM
DJ: 34,500.66 +25.83 NAS: 13,290.78 -26.16 S&P: 4,369.71 -0.65 8/18
DJ: 34,463.69 -36.97 NAS: 13,497.59 +206.81 S&P: 4,399.77
+30.06 8/21
NEW YORK, Aug 21
(Reuters) - The Nasdaq ended more than 1% higher and the S&P 500 also rose
on Monday, with shares of Nvidia jumping as investors were optimistic ahead of
its earnings this week, and other technology-related stocks gaining. The Dow Jones industrial average ended
slightly lower. The yield on 10-year
Treasury notes hit highs last seen during the Great Financial Crisis in 2007 as
investors looked warily toward a meeting of central bankers who convene on
Thursday at Jackson Hole in Wyoming. Federal Reserve Chair Jerome Powell is due
to speak on Friday. The technology
sector (.SPLRCT) gave the
biggest boost to the S&P 500 and Nasdaq, while an index of
semiconductors (.SOX) advanced 2.8%.
Nvidia (NVDA.O) rose 8.5%, leading gains among semiconductor stocks, as HSBC raised its
price target on the stock to $780, the second highest on Wall Street. Nvidia, one of the biggest winners in this year's artificial
intelligence tech stock rally, is expected to forecast quarterly revenue above
analysts' estimates when it reports late on Wednesday. Nvidia's stock is up
more than 220% for the year so far, while the Nasdaq is up 29%. "Nvidia is considered the brand for AI," said
Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North
Carolina. "Their targets have been lifted dramatically, so the question is, can they
deliver... A catalyst coming in with Nvidia would be extremely
helpful."
At the same time, she said, investors are anxious to hear Powell's comments at Jackson Hole. Concerns the Fed will keep interest rates higher for longer have pushed up U.S. Treasury yields, and fanned worries about the impact of higher rates on businesses and consumers.
The Dow Jones Industrial
Average (.DJI) fell 36.97
points, or 0.11%, to 34,463.69, the S&P 500 (.SPX) gained 30.06 points, or 0.69%, to
4,399.77 and the Nasdaq Composite (.IXIC) added 206.81 points, or 1.56%, to
13,497.59.
Among decliners in the Dow, Johnson & Johnson (JNJ.N) shares fell 3% after the healthcare conglomerate said it was expecting to retain a stake of about 9.5% in its newly separated consumer health unit, Kenvue (KVUE.N). Goldman Sachs Group's stock (GS.N) dipped 0.9% after the bank said it was weighing the sale of a part of its wealth business. Also in the tech space, Palo Alto Networks (PANW.O) surged 14.8% after the cybersecurity firm alleviated worries about its late Friday release of results with a strong quarter and a forecast for annual billings above expectations. And VMware (VMW.N) jumped 4.9% after UK's competition regulator cleared Broadcom's (AVGO.O) purchase of the cloud computing firm. Broadcom's stock gained 4.8%.
Volume on U.S. exchanges was 9.75 billion shares, compared with the 10.99 billion average for the full session over the last 20 trading days.
Declining issues outnumbered advancing ones on the NYSE by a
1.44-to-1 ratio; on Nasdaq, a 1.08-to-1 ratio favored decliners. The S&P 500 posted 3 new 52-week highs
and 18 new lows; the Nasdaq Composite recorded 36 new highs and 214 new lows.
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