The Dow Jones Industrial Average crossed 53000 for the first time at Monday’s open before edging lower, while the Nasdaq and S&P 500 climbed as AI-tied chip stocks rebounded. Oil eased after OPEC+ agreed to raise output.
The Dow surpassed 53000 for the first time at the opening bell Monday, then gave the milestone back and recently traded down fractionally. The Nasdaq Composite and S&P 500 held their gains, up 1.1% and 0.6% respectively in recent trading, as chip stocks led the market higher after a holiday-shortened week.
Chip stocks lead the rebound
AI-tied shares rose to start the week after dropping in Thursday’s session. Sandisk, which had plunged 14% to lead decliners on both the S&P 500 and Nasdaq last time out, gained 4%. Intel and Micron Technology climbed 5% and 3.5% after each fell more than 5% Thursday.
The bounce hinted at a return of faith in the artificial intelligence trade after the late-June slump in chip names. On Sunday, Nvidia supplier Hon Hai, also known as Foxconn, reported a stronger-than-expected rise in quarterly sales, a sign of sustained AI demand.
Microsoft bucks the trend
Six of the Magnificent Seven mega-cap tech stocks traded higher Monday. The exception was Microsoft, whose shares declined nearly 2% on reports it was cutting thousands of workers in its Xbox division. The company said it would eliminate around 4,800 jobs, roughly 2.1% of its global workforce.
Attention now turns to earnings. Samsung Electronics, the world’s biggest maker of memory chips, is expected to post an 18-fold jump in profit year-on-year when it reports Tuesday.
Oil slips as OPEC+ lifts output
Oil prices edged lower after OPEC+ said it would raise output targets by 188,000 barrels a day starting next month. West Texas Intermediate and Brent crude futures were both down less than 0.1%, at $68.65 and $72.10 per barrel respectively.
Elsewhere, the U.S. dollar index rose 0.2% to 101.09, while gold futures gained 0.6% to $4,150 an ounce. The 10-year Treasury yield sat above 4.49%, little changed from Thursday’s close, as investors awaited services data and Wednesday’s Federal Reserve minutes.
Sources: Investopedia, Yahoo Finance
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