The S&P 500 and the Nasdaq concluded their trading session on a high note on Monday, propelled by a significant surge in Nvidia (NASDAQ:NVDA)'s shares after a positive outlook from Morgan Stanley (NYSE:MS). Nvidia (NVDA) experienced a 7.1% jump, marking its most substantial daily increment since May 25. This growth can be traced back to the company's promising revenue projections that emphasize the transformative role of artificial intelligence (AI). This positive trajectory in Nvidia's stocks escalated the information technology index by 1.85%, making it the most potent among the 11 S&P 500 sector indexes. Other leading tech stocks, including Alphabet (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN), also witnessed increases, while Tesla (NASDAQ:TSLA) experienced a 1.2% dip after announcing price reductions for specific Model Y variants in China.
Market participants are setting their sights on this week's quarterly financial results from top-tier U.S. retailers, such as Walmart (NYSE:WMT) and Target. Key economic data, including July's retail sales figures, will be pivotal in molding expectations about the future trajectory of U.S. interest rates. Presently, traders predict an 89% likelihood that the Federal Reserve will sustain its current interest rates into the next month, based on data from CME Group's (NASDAQ:CME) Fedwatch tool. Additionally, Goldman Sachs (NYSE:GS)' most recent publication indicates anticipations of the Fed commencing funds rate reductions in Q2 2024.
Investors worldwide remain cautious due to apprehensions about China's debt-laden real estate sector. This sentiment intensified after Country Garden, China's premier private real estate developer, sought to postpone a payment for a domestic onshore bond. Meanwhile, PayPal (NASDAQ:PYPL) announced a significant executive shift by appointing Alex Chriss, previously an executive at Intuit (NASDAQ:INTU), as its CEO, resulting in a 2.8% share price rise.
On the other hand, AMC's (AMC) ordinary stocks plummeted by nearly 36%, even as its preferred stock witnessed a 16% ascent. This decline followed the approval of AMC's revised shareholder settlement by a Delaware court. Furthermore, Hawaiian Electric Industries (NYSE:HE) experienced a significant drop in its shares by roughly 34%, as inquiries intensified regarding the company's equipment's potential role in the catastrophic wildfires in Lahaina, Maui. On the trading front, U.S. exchanges observed slightly subdued activity with 9.7 billion shares changing hands, a figure slightly below the previous 20 sessions' average.
This article was originally published on Quiver Quantitative