American Stock Indexes End the Day in Green
The S&P 500 rose on Monday and had its best day since June 5th, thanks to the increase in technology stocks. This came after the index had its worst weekly decline since April, as reported by CNBC.
The broad index increased by 1.1% to 5564.41 points. The technology-focused Nasdaq Composite rose by 1.6% to 18,007.57 points. The blue-chip index, Dow Jones Industrial Average, added 127.91 points, or 0.3%, ending the day at a level of
мпаниите като Nvidia и Meta Platforms се възстановяват и показват стабилност, което води до повишаване на цените им на борсата.”
Stock Prices Rebound
The stock price of Nvidia has risen by 4.8%, partially recovering from its 8% drop last week. Other major tech stocks such as Meta Platforms and Alphabet also saw their value increase by more than 2%. The worst-performing company in the S&P 500 turned out to be CrowdStrike, which fell by 13.5% and erased nearly 18% of its value from the previous week.
“We are seeing a shift back to the technology sector after a significant sell-off, exacerbated by CrowdStrike’s downturn,” commented Mona Mahajan, Senior Investment Strategist at Edward Jones. “Companies like Nvidia and Meta Platforms are rebounding and showing stability, leading to an increase in their stock prices.”
The Impact of Increasing Profits and Decreasing Interest Rates on Investors
Last week, technological stocks were under pressure as investors pulled back from these companies in favor of smaller ones. This sent the S&P 500 down nearly 2% last week. The Nasdaq lost over 3% for the same period.
Despite the strong gains in the technology sector, companies with smaller market capitalization are holding their own. The Russell 2000 turned out to be 1% higher, adding to its 6% growth from last week.
Investors Shift Focus to Political Developments in the US
Simultaneously, investors are closely monitoring the political situation in the United States after Joe Biden dropped out of the presidential race on Sunday and endorsed Vice President Kamala Harris. Following Biden’s disastrous performance in the June debate, many analysts saw an increasing likelihood of former President Donald Trump winning in November.
Market Attention on Earnings Season and Central Bank Policy
Earnings season and central bank policy remain at the forefront of Wall Street’s attention. Investors are evaluating a nearly 93% probability of the Federal Reserve lowering interest rates.
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