Key points:
The stock market experienced gains on Monday, driven by strong performances from Apple and Tesla. Despite light pre-holiday trading, the Dow, S&P 500, and Nasdaq all saw positive movement. Investors are eagerly awaiting labour market data later this week to gain insights into the interest rate outlook.
Apple’s stock rose by 2.9%, Microsoft saw a 2% increase, and Amazon ended 2.2% higher. These movements helped the tech-heavy Nasdaq close on a higher note.
See: Nasdaq trading at 19762.60 as seen on the VT Markets app.
Tesla shares surged by 6.1% ahead of the second-quarter vehicle delivery data. There are still concerns about slowing growth in deliveries and potential price cuts, which could affect the stock’s future performance.
You might be interested: In the EV boom, some traders like this Share CFD better than Tesla
In contrast, shares of semiconductor makers Advanced Micro Devices dropped by 2.8%, and Arm Holdings fell by 2.9%. This decline pulled the Philadelphia SE Semiconductor index close to a one-week low. Real estate stocks also dropped nearly 1%, seen as a bond proxy due to rising U.S. Treasury yields.
However, higher yields positively impacted bank stocks. The S&P 500 banks index jumped to its highest level in more than a month. JP Morgan Chase shares reached an all-time high after the bank increased its dividend to $1.25 per share from $1.15 and authorised $30 billion in share buybacks effective July 1.
Chewy’s stock dropped by 6.7%, reversing earlier gains after Keith Gill, known as “Roaring Kitty,” disclosed a 6.6% stake in the pet products retailer. Trading volumes were thin ahead of the U.S. Independence Day holiday, with volume on U.S. exchanges at 10.59 billion shares, down from the 11.89 billion average over the last 20 trading days.
Manufacturing PMI data from the Institute for Supply Management indicated a contraction for the third straight month in June, with prices paid dropping to a six-month low. This is an encouraging sign for the U.S. Federal Reserve’s battle with inflation.
Also read: Stocks edge up, bond yields dip; inflation data ahead
The Dow Jones Industrial Average rose by 50.66 points, or 0.13%, to close at 39,169.52. The S&P 500 gained 14.61 points, or 0.27%, to reach 5,475.09, and the Nasdaq Composite increased by 146.70 points, or 0.83%, to 17,879.30. Declining issues outnumbered advancers by a 1.87-to-1 ratio on the NYSE, with 162 new highs and 99 new lows.
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