Wall Street ends without direction, another record for Nasdaq and S&P 500

Wall Street ends without direction, another record for Nasdaq and S&P 500
Wall Street ends without direction, another record for Nasdaq and S&P 500

The Nasdaq and S&P 500 indices gained 0.28% and 0.10% respectively, setting new closing records, while the Dow Jones fell 0.08%.

The New York Stock Exchange ended on a mixed note on Monday, continuing the momentum of the last few days, seemingly confident in the indicators and results to come later this week.

The Nasdaq and S&P 500 indices gained 0.28% and 0.10% respectively, setting new closing records, while the Dow Jones fell 0.08%.

This is the 35th record of the year for the S&P 500 and the 25th for the Nasdaq. The S&P 500’s all-time high in a calendar year dates back to 1995, when it reached 77 peaks.

“This is the first day back after the long weekend,” which was marked by the American Independence Day holiday on Thursday, said Kim Forrest of Bokeh Capital Partners. “Often, the market returns to the mood it had before the break. And it was positive, particularly for technology stocks.”

The semiconductor riders have therefore resumed their gallop, led by the inevitable Nvidia (+1.88%), followed by Broadcom (+2.50%), AMD (+3.95%), Qualcomm (+1.04%) or Intel (+6.15%).

Taiwanese TSMC (+1.43%), listed in New York, even took advantage of the situation to briefly cross, for the first time, the symbolic threshold of a thousand billion dollars in capitalization.

“The market is holding on to five technology stocks,” Forrest said, noting that TSMC will be the first player in the sector to publish its results, on July 18. “This will give us a first glimpse of the trajectory of artificial intelligence” and the investments made in this technology.

A correction on Wall Street would necessarily involve, according to the manager, a slippage of one or more tech ogres, the rest of the market having much more moderate performances.

Earnings season opens Thursday with PepsiCo and Delta Air Lines, followed by banks JPMorgan Chase, Wells Fargo and Citigroup on Friday.

Operators are also awaiting the publication of the CPI consumer price index on Thursday, from which they expect a further slowdown.

In the absence of fresh news on Monday, the yield on 10-year US government bonds was stable at 4.27%.

On the stock market, Boeing was supported (+0.55%) by the announcement of an agreement with the US Department of Justice, which provides that the aircraft manufacturer will plead guilty to “conspiracy” aimed at deceiving the US government during the 737 MAX certification process.

This outcome spares the aircraft manufacturer a criminal trial, which could have had further repercussions on its already tarnished image.

But the momentum faded after a notice from the US aviation regulator (FAA), which called for immediate inspections of the oxygen generators on more than 2,600 737 family planes operating in the United States.

Media group Paramount Global fell 5.33% as investors took a cool view of the terms of its announced merger with production company Skydance Media, whose shareholders will take control of the new entity.

Skydance investors will put more than $8 billion on the table, to become a majority shareholder in the merged group, but also to financially stabilize Paramount, which is heavily in debt.

Nike’s downward slide continues (-3.16%), after the downward revision of its objectives at the end of June. The sports equipment manufacturer’s stock fell on Monday to its lowest level since the start of the pandemic in March 2020.

Premium electric carmaker Lucid gained momentum (+7.85%) after reporting a 70% increase in deliveries in the second quarter. The group was led by electric truck specialist Nikola (+16.69%).

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