US stocks tilted higher on Monday as the Nasdaq Composite (^IXIC) touched new intraday highs and the Dow Jones Industrial Average (^DJI) tried to top the 40,000 level again.
The S&P 500 (^GSPC) rose 0.3%, and the Dow edged higher in the wake of the blue-chip benchmark’s record close on Friday. The tech-heavy Nasdaq Composite climbed about 0.7% as Nvidia (NVDA) shares gained ahead of its highly anticipated earnings this week.
Stocks have gained as investors become more optimistic that the Federal Reserve will soon cut interest rates, despite words of caution from policymakers. All three major gauges closed at record highs on Friday as appetite for risk rose and Wall Street strategists painted a bullish picture for stocks.
A key question for investors is whether that outlook is sustainable or whether it’s getting ahead of where the Fed is headed. A key test comes on Wednesday, with the release of minutes from the Fed meeting in May, as Yahoo Finance’s Josh Schafer reports.
Appearances on Monday from Christopher Waller, Philip Jefferson and other policymakers could shed light on the debate. Fed official Michael Barr said inflation data has been “disappointing” and indicated rates will have to stay higher for longer. Meanwhile, his colleague Raphael Bostic said in a media interview that inflation will come down “far slower than many had expected.”
Read more: How does the labor market affect inflation?
The market is bracing for heavily anticipated quarterly results from Nvidia on Wednesday, eyed as a key catalyst for the rally in stocks. Expectations for the AI chipmaker’s earnings and revenue are sky-high — for growth of 400% and 240%, respectively — and the focus is on whether it can again live up to the hype.
At the same time, rallies in commodity markets are fueling fears of a knock-on rise for US inflation. Copper prices on the LME topped $11,000 a ton for the first time, soaring to their highest-ever level as a looming supply shortage draws in investors. Meanwhile, gold prices (GC=F) jumped to tap an intraday record at around $2,450 an ounce.
Live7 updates
-
-
Nvidia gains 2% ahead of chip giant’s earnings this week
Nvidia (NVDA) stock gained more than 2% ahead of the chipmaker’s highly anticipated earnings report expected on Wednesday.
Hopes are high for the AI darling as its results could be a key catalyst for markets. Nvidia shares are up more than 90% year-to-date.
Other chipmakers in the green territory on Monday include Micron (MU) and Advanced Micro Devices (AMD). Gains in semiconductor stocks helped the Nasdaq Composite (^IXIC) climb 0.5% during the morning session.
Semiconductors gain ahead of Nvidia’s earnings expected on Wednesday -
-
Read More: Nasdaq touches new record, Dow tries to top 40,000 again