The US stock market saw the S&P 500 and Nasdaq indices reach new record highs on Monday, signaling a positive start to the week for technology stocks. Nvidia’s shares rose after a 10-for-1 stock split, with the tech company’s inclusion in the Dow Jones Industrial Average now a subject of investor speculation. The gains in Nvidia’s stock come amidst a broader market anticipation of key economic events, including the Federal Reserve’s upcoming interest rate decision and the Consumer Price Index report due on Wednesday which could provide further insights into the central bank’s monetary policy direction and the state of inflation in the economy.Meanwhile, Apple’s shares took a hit after the tech giant announced its artificial intelligence roadmap, including a partnership with OpenAI and the introduction of ‘Apple Intelligence’, which did not resonate as positively with investors. Southwest Airlines, on the other hand, saw a significant boost with a 7% surge after activist investor Elliott Investment Management disclosed a $1.9 billion stake in the airline, advocating for a change in leadership. The market response to these developments reflects a mix of optimism and caution as investors navigate through a landscape shaped by corporate news and macroeconomic indicators.The stock market’s resilience is also evident in the face of mixed global cues, including the recent French election results and the European Parliament’s surprises that led to a dip in European stocks. As Wall Street sets its gaze on the upcoming Federal Reserve meeting, the sentiment remains cautiously optimistic, with the potential for interest rate cuts being a critical factor for future market movements.
Key points
- S&P 500 and Nasdaq indices reached new highs, with Nvidia’s stock rising post-split.
- Apple’s stock fell following AI announcements and partnership with OpenAI.
- Investors are cautiously awaiting the Federal Reserve’s interest rate decision and CPI report.
