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Stock market today: Stocks tilt higher as Dow tries to top 40,000 again


US stocks were little changed on Monday after the Dow closed above 40,000 for the first time, as copper prices surged and Nvidia (NVDA) earnings loomed on the horizon.

S&P 500 (^GSPC) rose 0.3%, while Dow Jones Industrial Average (^DJI) was broadly flat in the wake of the blue-chip benchmark’s all-time high. The tech-heavy Nasdaq Composite (^IXIC) stepped up about 0.6%.

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 Atlanta Fed president Raphael Bostic said in a media interview inflation will come down “far slower than many had expected.”

Read more: How does the labor market affect inflation?

The market is also 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

  • Nasdaq Composite hits new intraday high

    The Nasdaq Composite (^IXIC) hit a new intraday high Monday as tech stocks gained.

    The S&P 500 Technology Sector Select (XLK) also touched a new record during the session. XLK is up more than 14% year-to-date while the Nasdaq is up more than 13% during the same period.

    Semiconductor related stocks rose Monday ahead of the Nvidia’s (NVDA) highly anticipated earnings due out on Wednesday after the market close.

  • 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

    Semiconductors gain ahead of Nvidia’s earnings expected on Wednesday

  • Stocks little changed as Dow dips below 40,000 level

    US stocks opened mixed Monday as the Dow Jones Industrial average Dow Jones Industrial Average (^DJI) struggled to add to Friday’s gains.

    The blue-chip index opened slightly below the flatline after closing above 40,000 for the first time on Friday.

    The S&P 500 (^GPSC) gained slightly while the tech-heavy Nasdaq Composite (^IXIC) rose roughly 0.4%.

    Investors have their eye on Nvidia (NVDA) earnings due out on Wednesday. Traders are also watching the metals market after Gold (GC=F) touched new intraday highs this morning. Silver (SI=F) hovered around 12-year-highs and copper (HG=F) also gained amid an energy transition that will require metals for industrial use.

  • Gold briefly touches record high as metals market continues to climb

    Gold (GC=F) rose just above a record $2,450 per ounce in early Monday’s trading before paring gains.

    The precious metal rallied to surpass its April nominal highs amid expectations the Federal Reserve will cut interest rates this year. High demand from central banks and Asian buyers has also helped gold prices rise roughly 17% year-to-date.

    Meanwhile, silver (SI=F) hovered at its highest level since December 2012, briefly surpassing $32 an ounce on Monday after a strong rally on Friday. Unlike gold, silver has industrial use, for purposes such as building solar panels.

    Copper (HG=F) hit record highs Monday on concerns of a supply shortage amid an energy transition. Year-to-date, the metal is up about 30%. While the rally has likely attracted speculators in recent days, the supply fundamental hasn’t changed, according to Wells Fargo head of real asset strategy John LaForge.

    “We frankly are not producing enough copper, and yet there are buyers everywhere for this copper across the globe,” LaForge recently told Yahoo Finance.

    “It doesn’t matter if it’s China, India, the United States. Everyone is pushing to go green, and copper is the number one metal for when it comes to that type of future.”

  • Watching Dr. Copper

    If the economy is poised for a pre-election slowdown, you aren’t seeing it industrial metal copper.

    Copper prices have touched record highs.

    Copper play Rio Tinto (RIO) eyeing a one-year high.

    A five-year look at copper prices shows record highs.

    A five-year look at copper prices shows record highs. (Yahoo Finance)

  • Nvidia expectations are super high

    We awake today to find Nvidia (NVDA) as the third trending ticker on the Yahoo Finance platform ahead of its earnings report on Wednesday.

    Clearly, the retail investor community is bracing for another impressive earnings-day (results + guidance) showing from the AI darling.

    Important point, however, from Bank of America Vivek Arya this morning: great from Nvidia may not be great enough.

    Says Arya:

    “Based on bullish investors we spoke with, expectations seem well-above consensus estimates as usual, with $26 billion in sales expected for reported fiscal first quarter (April), or 6% ahead of consensus $24.6 billion, with guidance expected to be close to $28 billion or 5% ahead of $26.7 billion. Second, gross margins are expected to peak at 77% in the fiscal first quarter, with well-expected outlook for a decline to 75%-76% in the fiscal second quarter (normalization after some one-off factors pushed it above 75% last few quarters). However, even if Nvidia were to potentially deliver on these bullish expectations, the stock could still react unfavorably as bears will likely complain that: 1) Nvidia’s sequential sales growth will decelerate to “only” 7%-8% quarter over quarter in the fiscal second quarter (July) outlook, well below the mid-teens or better the last few quarters, 2) Gross margin is peaking and decline is a sign of pricing pressure, unfavorable mix (more China H20 shipments and/or more inference units) and slowing demand/easing supply.”

  • Nvidia memories

    Deutsche Bank strategist Jim Reid with a moment of reflection ahead of Nvidia’s (NVDA) closely watched earnings report on Wednesday:

    “Remember this time last year the mainstream AI frenzy began around the time of Nvidia’s results where the company climbed over 20% on results day and has now tripled in value over 12 months.”

    Nvidia shares are up 197% since that May 24, 2023 earnings report.



Read More:Stock market today: Stocks tilt higher as Dow tries to top 40,000 again

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