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Stock market today: Dow ends higher as Nvidia leads tech rally on dip-buying fever

Published Aug 14, 2023 04:12PM ET
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Investing.com -- The Dow closed higher Monday, as weakness in banks was offset by renewed demand for tech amid a surge in Nvidia (NASDAQ:NVDA) ahead of a slew of incoming economic data set to provide further insight on the consumer.

The Dow Jones Industrial Average rose 0.1%, or 26 points, Nasdaq rose 1%, and the S&P 500 was 0.6% higher.

Nvidia leads dip-buying rally in tech

The recent dip in tech attracted dip buyers, particularly in semiconductor stocks, with Nvidia soaring more than 7% after Morgan Stanley said the recent dip in the chipmaker was a buying opportunity.

The vote of confidence from Morgan Stanley comes even as concerns linger about bloated inventory and waning demand for chips amid an economic stumble in China.

But rising demand for AI is likely to boost data center spending, Morgan Stanley adds, bolstering Nvidia’s growth.

Apple Inc (NASDAQ:AAPL), Meta Platforms Inc (NASDAQ:META), Alphabet Inc Class A (NASDAQ:GOOGL), and Microsoft Corporation (NASDAQ:MSFT), meanwhile, were also in demand following their recent weakness.

10-year Treasury yield gives up gains ahead of consumer data

The U.S. 10-year Treasury yield jumped to 4.204%, its highest level since Nov. 22, but those gains were short-lived as investors looked ahead to the latest consumer data due Tuesday.

Retail sales data for July is expected to show that the consumer remains resilient. Fresh signs of a strong U.S. consumer, which makes up about 70% of economic of growth, would further dent bets that the Federal Reserve is unlikely to resume rate hikes later this year.

US Steel soars of deal fever; PayPal names new CEO

United States Steel Corporation (NYSE:X) jumped more than 36% after the rejecting a more than $7 billion buyout from Cleveland-Cliffs Inc (NYSE:CLF). The steel maker detailed plans to review strategic options.

Esmark, meanwhile, made a $35 a share offer for US Steel.

PayPal Holdings (NASDAQ:PYPL), meanwhile, tapped Intuit’s Alex Chriss as its new chief executive to replace Dan Schulman.

“We believe this an important leadership change, fitting the company's focus on repositioning both sides of its merchant and consumer facing platforms,” Wedbush said in a note.

Tesla leads weakness in EVs after price cuts

Tesla (NASDAQ:TSLA) said it would cut prices of its Model Y electric vehicles in China, raising fresh fears about pressure on margins. Its shares fell more than 1%.

The move raised fears of price war in the EV market, pressuring other EV makers including Rivian Automotive Inc (NASDAQ:RIVN) and Nikola (NASDAQ:NKLA).

Nikola, meanwhile, said it would temporarily pause sales of its EVs after several battery fires. The company recalled about 209 of its trucks following a probe that found a coolant battery leak was the likely cause of a fire its Phoenix headquarters in June.

Regional banks slide to pressure financials; Walmart slips ahead of earnings

Regional bank stocks including Citizens Financial Group Inc (NYSE:CFG), Fifth Third Bancorp (NASDAQ:FITB), and KeyCorp (NYSE:KEY) pressured the broader financials as Moody's recent downgrade of several banks continued to weigh on sentiment.

Walmart Inc (NYSE:WMT), meanwhile, was also a drag on the broader market, ahead of the supermarket giant's quarterly results later this week.

"For Q2, we expect Walmart to deliver another beat and guidance raise," Oppenheimer said in a recent note, citing an improving business mix and continued traction with digital effort.

Stock market today: Dow ends higher as Nvidia leads tech rally on dip-buying fever
 

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Comments (9)
Chris Johnson
Chris Johnson Aug 14, 2023 6:43PM ET
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dip-buying fever... it says it all. Sick market
Warm Camp
Warm Camp Aug 14, 2023 6:33PM ET
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Morgan Stanley was delegated to make a patriotic act of pumping AI. This helped the market a bit for today.
Mesna Kroglica
Mesna Kroglica Aug 14, 2023 6:23PM ET
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Massive bull trap on nvidia!
Derick Lim
Derick Lim Aug 14, 2023 6:13PM ET
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Buying opportunity for investors and selling profit opportunity for MM.......thanks to Morgan Stanley
Maximus Maximus
Maximus Maximus Aug 14, 2023 6:13PM ET
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do you always let other people do your thinking for you? do your own math, make your own decisions, then stick with it..
Maximus Maximus
Maximus Maximus Aug 14, 2023 6:13PM ET
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you're in here every day, complaining under every article.. maybe it's time to make a change..?
dylan mulvaney
dylan mulvaney Aug 14, 2023 5:48PM ET
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NVDA is currently trading at a P/E of 408.55.  10 years ago it was trading at a P/E of 18.53. There is no added value in this market, just added valuation. Valuations have not been this high since the 2000 com crash. There will be nothing to save this market when they pull the plug on these massive valuations.
Casador Del Oso
Casador Del Oso Aug 14, 2023 5:48PM ET
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Those who like the stock and have diamond hands will be hurt the worst.
tiago quental
tiago quental Aug 14, 2023 5:48PM ET
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P/E Ratio is around 230 today. Where did you get the 408?
Gil Montana
Gil Montana Aug 14, 2023 5:48PM ET
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tiago quental 230 is enough to confirm his point
Aug 14, 2023 4:49PM ET
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As dip buyers fomo the rally 💀💀
Casador Del Oso
Casador Del Oso Aug 14, 2023 4:29PM ET
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NVDA PE ratio is 227. So they will have huge demand for AI chips for the next 50+ years to justify this PE.
Casador Del Oso
Casador Del Oso Aug 14, 2023 4:29PM ET
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When this thing drops it's going to be really ugly.
Aug 14, 2023 4:24PM ET
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Aug 14, 2023 4:24PM ET
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