Wall Street’s major indexes rose Monday, as investors anticipated the release of market-moving results.
After last week’s steep losses, investors were eagerly awaiting the results from AI-chip leader NVIDIA.
The Nasdaq Composite gained 0.9%, and the S&P500 rose 0.6%.
The Dow Jones Industrial Average remained largely the same as it was at its previous close.
CNBC reported that investors were focused on the release of NVIDIA earnings Monday, as this could be the catalyst to drive demand for Blackwell AI chip.
Kim Forrest told Reuters that Nvidia was the star of this week.
The Dow Jones recently included NVDS, and she highlighted its importance to the Dow.
The market will wait until then to see what Nvidia is doing, unless some new information surfaces before that time.
Fed Policy and Earnings Focus
Other earnings reports on Monday from major retailers could give insight into consumer spending and the US economy.
Wall Street dropped sharply last week as traders reduced bets that the Federal Reserve would ease its monetary policies further.
After Donald Trump won the 2020 elections, stocks fell from their highs.
US Fed Chairman Jerome Powell stated last week that it is not in a hurry to reduce rates, as the economy of the United States remains resilient despite sticky inflation.
Markets expect the Fed to reduce rates by 25 basis point at its December meeting, but bets on this have decreased since last week.
NVIDIA Shares Slip
NVIDIA shares were in red Monday as investors awaited its earnings report.
The shares initially dropped as much as 2,8% after Monday’s report that claimed its new AI chip was overheating servers.
The stock and the sector of information technology, both lost 0.3% as we wrote this article, were affected by the news.
Robert Pavlik, senior portfolio manager at Dakota Wealth, told Reuters:
I am optimistic about their ability to keep up with the competition, but… there has been such a high level of optimism surrounding that name (Nvidia), that it’s hard not to see some possibility for a slight selloff.
The stock of NVIDIA has risen by more than 186% in the past year.
Liberty Energy, Oklo stocks surge
Liberty Energy shares and Oklo’s rose on Monday, after the President-elect Trump selected Chris Wright to be the new energy secretary for the US.
Wright serves as the chairman of Oklo, a nuclear start-up company and is also the CEO of Liberty Oilfield Services.
On Monday, shares of Oklo rose by more than 18% while Liberty Energy’s soared over 5%.
Tesla jumps
At the time this article was written on Monday, Tesla shares had risen by more than 6 percent.
Stocks rose following a report that claimed members of Trump’s transition team wanted to relax US regulations for self-driving vehicles.
On Monday, the Nasdaq composite also saw a boost from gains made by electric car maker Tesla.
On Monday, Spirit Airlines shares were suspended after it filed for bankruptcy.
Stocks were down 90 percent since the start of this year, and they closed Friday at $1.08 each.
The shares of CVS Health also gained 2,7% following the announcement that it will add four new board members in an agreement signed with Glenview Capital Management.
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