Nasdaq, S&P 500 Close at Records as Wall Street Turns to Tech

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The S&P 500 and the Nasdaq on Monday closed at records in mixed trading as investors turned to technology shares and away from equities associated with the economy’s reopening amid a worrying rise overseas of cases of the highly transmissible coronavirus Delta variant.

© TheStreet Nasdaq, S&P 500 Close at Records as Wall Street Turns to Tech

The Dow Jones Industrial Average finished down 150 points, or 0.44%, to 34,283, while the S&P 500 climbed 0.23% and the Nasdaq rose 0.98%.

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Leading the top Nasdaq stocks was graphics-chip specialist Nvidia NVDA, up 5%. Three of the world’s top chipmakers — Broadcom , Marvell and MediaTek — went against other big tech companies and blessed the graphics-chip specialist’s proposed acquisition of U.K.-based Arm Holdings.

The S&P 500 and Nasdaq on Monday also set intraday records. The S&P 500 rose for a third day.

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A jump in Delta variant coronavirus infections in Asia has forced Sydney to issue fresh stay-at-home orders, and lockdowns have been extended in Malaysia and Thailand. The moves underscore the breadth of the new outbreak in the region.

Stocks in Asia had finished lower on Monday as the new restrictions were put in place.

The S&P 500 closed at a record in mixed trading Friday amid optimism about the U.S. economic recovery. The index’s performance last week was its best weekly effort since February.

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Fears about the Federal Reserve’s hawkish tilt have eased, with sentiment getting a boost from a report on inflation that came in as expected. The personal consumption expenditures price gauge – the Federal Reserve’s preferred inflation measure – rose 0.4% in May, below forecasts.

The data calmed market worries about a rapid rise in prices as the U.S. economy makes its way out of the COVID-19 pandemic.

Investors last week also were encouraged by the announcement of a roughly $1 billion bipartisan infrastructure deal.

“With inflation fears quelled for the moment and banks getting a clean bill of health late last week, the market looks to be in a good place,” said Chris Larkin, managing director of trading at E-Trade.

“And while a lot can happen in three days, if the month had ended on Friday the stock market would have booked one of its 20-best Junes of the past 60 years – no June swoon here,” Larkin added.

Facebook rose after a D.C. federal court dismissed antitrust lawsuits brought against the social-media giant by the Federal Trade Commission and state attorneys general. The actions had charged that the company had engaged in anticompetitive behavior to maintain a monopoly position in personal social networking.

Boeing fell as its fuel-efficient 777X long-haul airliner may not receive federal approval until some time in 2023, according to a letter recently made public by the Federal Aviation Administration.

Tesla will recall about 285,000 of its Model 3 and Model Y electric cars that were built in China because of a software glitch.

The stock, which jumped 7.8% last week for its best weekly performance in months, finished up 2.5% on Monday.

Boeing, Facebook and Nvidia are holdings in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.

This article was originally published by TheStreet.

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