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MARKET REVIEW. The New York Stock Exchange concluded in the green on Monday, starting a shortened week on a high note, for the Nasdaq and the broader S&P 500 index which reached new records.
The main Canadian stock index fell on Monday, while American markets reached near record levels.
To (re)consult market news
Stock market indices at closing
In Toronto, the S&P/TSX fell by -51.22 points (-0.24%) to 21,587.88 points.
In New York, the S&P 500 rose by +41.63 points (+0.77%) to 5473.23 points.
THE Nasdaq rose +229.25 points (+1.16%) to 19,914.75 points.
THE DOW gained +188.94 points (+0.49%) to 38,778.10 points.
THE loon posted a decline of -US$0.0004 (-0.0549%) to US$0.7282.
THE oil increased by +US$2.17 (+2.77%) to US$80.62.
L’gold fell by -US$15.50 (-0.66%) to US$2,333.60.
THE bitcoin posted a decline of -US$31.94 (-0.05%) to US$66,436.46.
Context
On Wednesday, US markets will be closed to observe the June 19 holiday, “Juneteenth”, which celebrates the end of slavery in the United States.
“The market is proving very resilient, supported by the enthusiasm for artificial intelligence,” commented Peter Cardillo of Spartan Capital.
For once, the titles of the chip designer for AI, Nvidia (NVDA)did not lead the race (NVDA, -0.68%) but the group’s valuation on the stock market trails the other two leaders, Apple (AAPL, +1.97%) And Microsoft (MSFT, +1.31%).
If Nvidia’s stock, which took a break on Monday, continues its run after having gained 173% since the start of the year, this promises to soon be a new trifecta for the world’s largest capitalizations.
“The progression of tech stocks linked to the development of AI has outpaced the rest of the market,” also noted Art Hogan of B. RIley Wealth Management.
Telecom infrastructure giants like Broadcom (AVGO, +5.41%) And Qualcomm (QCOM, +3.20%) have thus benefited from the momentum that the transmission of artificial intelligence services will provide.
The microprocessor giant Intel (INTC) gained 1.63%.
On the macroeconomic level, investors weighed the Empire State index of manufacturing activity in the New York region, which remained in contraction in June even if it improved a little.
American bond rates rose again, with ten-year rates at 4.27% compared to 4.22% on Friday after their rapid decline due to political uncertainties in Europe when French debt rates soared after the European elections and the surprise dissolution of The national assembly.
The American dollar ($US) returned 0.29% to the euro at US$1.0734 per euro.
On Friday the greenback rose against the European currency which was now worth only US$1.0695 per euro, the lowest in a month and a half.
The slight tension on bond yields was explained, according to Peter Cardillo, by the fact that the president of the Minneapolis Fed, Neil Kashkari, indicated on Sunday that it was “reasonable to predict” a rate cut by the central bank American in December.
“This pushes back the deadline for the rate cut a little,” while the market is mainly counting on a reduction in the cost of credit from September, underlined the Spartan Capital analyst.
On the market, stocks relating to distribution and commerce were sought after, as investors await monthly data on retail sales in the United States on Tuesday.
The electronic store brand Best Buy (BBY) climbed 4.64% after favorable comments from analysts and the announcement of the distribution of a comfortable dividend.
Several chains have been favored by the market such as Dicks Sporting Goods (DKS, +4.33%)big stores Target (TGT, +2.70%) and the semi-wholesale seller Costco (COST’ +1.43%).
The 3D software company for industry, Autodesk (ADSK)soared 6.48% to US$240.51 after an activist shareholder demanding improvements revealed a US$500 million stake in the company.
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