Investors awaited the results of this week’s US Federal Reserve two-day conference.
The S&P 500 Index was 0.4% up at the time this article was written, while the Nasdaq Composite index had risen 0.8% since the previous closing.
Dow Jones Industrial Average was mostly flat.
On Tuesday, the US Fed begins its two-meeting schedule.
Market participants expected that the US Central Bank would cut interest rates 25 basis points.
If so, this would indicate that the Fed cut 100 basis points in this year or, more precisely, from September.
David Morrison is a senior analyst with Trade Nation. He said that although the price was less than 150 points at the start of the year it still created a positive tailwind in the stock market for 2024.
The Fed will likely cut rates by another 50 basis points in 2013, but this is dependent on the inflation trend returning to its former downward trajectory.
CME FedWatch shows that traders are pricing in 99.1% of the probability for the US central banks to cut rates this week by 25 basis points.
Super Micro Computer plunges
Super Micro Computer shares fell nearly 14 percent on Monday.
Bloomberg reported that Evercore, an investment bank hired by the company to help it raise debt and equity capital, was responsible for this fall.
Markets were worried that Nasdaq might delist the stock after it missed deadlines for filing its financial and quarterly reports.
The confidence of CEO Charles Liang that the stock wouldn’t be delisted did not seem to ease these fears.
It is now February before the company has to submit its unfinished reports.
Super Micro shares were trading at around 28% more for the year.
Broadcom Inc surges
On Monday, shares of the chipset maker continued their upward trend.
The stock’s gains last week, combined with Monday’s surge, helped it reach a market cap of over $1 trillion for the very first time.
Broadcom has seen its stock rise after reporting an increase in revenue related to artificial intelligence on Friday. This was followed by better than expected earnings.
Shares of Apple, Tesla, and Alphabet, the parent company of Google, all rose.
NVIDIA Corporation shares, on the other hand, dropped 2% Monday.
The post S&P 500, Nasdaq and Super Micro Computer rise before Fed meeting; Super Micro Computer shares plunge while Broadcom surges could be updated as new developments unfold.
