S&P 500 and Nasdaq hit record highs as Nvidia rallies

Reuters

S&P 500 and Nasdaq hit record highs as Nvidia rallies

2024 7월 8, 오후 6:32 GMT

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Boeing rises after plea deal in 737 MAX probe

Paramount Global slips after Skydance merger deal

Fed's Powell to testify in Congress on Tuesday and Wednesday

Indexes: S&P 500 +0.06%, Nasdaq +0.20%, Dow -0.08%

Updates at 2:04 p.m. EDT/1804 GMT

By Noel Randewich and Ankika Biswas

July 8 (Reuters) -A rally in chip stocks lifted the Nasdaq and S&P 500 to record highs on Monday as investors awaited fresh inflation data, commentary from Federal Reserve Chair Jerome Powell and the start of quarterly earnings season.

Nvidia NVDA.O jumped 2.5%, while Super Micro Computer SMCI.O, which makes AI-optimized servers using Nvidia's chips, rallied almost 9%. Intel INTC.O rallied almost 6%.

The Nasdaq .IXIC climbed to a record high, and the S&P 500 .SPX rose modestly and also reached a record high.

Traders will scrutinize consumer price data due on Thursday and producer price data expected on Friday to gauge the Fed's progress in fighting inflation.

Investors worry that waiting too long to cut interest rates could damage the labor market and push the economy into a recession. They will closely monitor Powell's semiannual testimony before U.S. Senate and House committees on Tuesday and Wednesday.

"What investors want to hear is a dovish tone and an acknowledgement that the two-sided risks are more evenly balanced today, in particular, with respect to the labor market," said Ross Mayfield, an investment strategy analyst at Baird.

Expectations for interest-rate cuts as early as September grew after Friday's nonfarm payrolls report showed U.S. job growth slowed in June - the latest data to point to weakness in labor market conditions.

Traders now see a greater than 75% chance of a rate cut of at least 25 basis points by September, up from last week's 60%, according to CME's FedWatch.

Citigroup C.N, JPMorgan Chase JPM.N and Wells Fargo WFC.N are slated to kick off Wall Street's second-quarter earnings season on Friday. Citigroup shares gained 1.1%, while Wells Fargo lost 1.4%.

Analysts on average see S&P 500 companies increasing their aggregate earnings per share by 10.1% in the second quarter, up from an 8.2% increase in the first quarter, according to LSEG I/B/E/S.

The S&P 500 was last up 0.06% at 5,570.68 points.

The Nasdaq gained 0.20% to 18,389.54 points, while the Dow Jones Industrial Average .DJI was down 0.08% at 39,345.56 points.

Of the 11 S&P 500 sector indexes, six rose, led by information technology .SPLRCT, up 0.59%, followed by a 0.23% gain in materials .SPLRCM. Consumer services .SPLRCL fell almost 1%, dragged down by a 1.8% dip in Meta Platforms META.O.

Paramount Global PARA.O fell more than 3% after it agreed on Sunday to merge with Skydance Media, scripting a new chapter for one of Hollywood's oldest studios.

Planemaker Boeing BA.N gained 0.3% after agreeing to plead guilty to a criminal fraud conspiracy charge and pay a fine of $243.6 million to resolve a U.S. Justice Department investigation into two fatal 737 MAX crashes.

Advancing issues outnumbered falling ones within the S&P 500 .AD.SPX by a 1.3-to-one ratio.

The S&P 500 posted 20 new highs and 7 new lows; the Nasdaq recorded 69 new highs and 90 new lows.

S&P 500 components so far in 2024 https://tmsnrt.rs/4f8kT79

Reporting by Noel Randewich in Oakland, California, Lisa Mattackal and Ankika Biswas in Bengaluru and Saeed Azhar in New York
Editing by Anil D'Silva, Pooja Desai and Matthew Lewis

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