The tech-heavy Nasdaq Composite rose 0.7% to a new all-time high. Stocks advanced in early trading Monday as the market aims to continue a rally that has propelled major indexes to a succession of record highs in recent weeks. The S&P 500 was up 0.2% recently, while the Dow Jones Industrial Average experienced a slight decline this morning. Stocks ended the day with minor losses on Friday, despite all major indexes reaching record highs earlier in the session after the August jobs report was released.
The employment data indicated a continued weakening in the U.S. labor market, bolstering investor expectations for imminent interest rate cuts by the Federal Reserve. Last month, Fed Chair Jerome Powell indicated that a weak labor market might justify a rate cut, while also expressing ongoing concerns regarding the potential inflationary effects of tariffs. This week’s key inflation data, including a report on wholesale prices on Wednesday and consumer price figures on Thursday, will be under close scrutiny in anticipation of the Fed’s policy committee meeting next week. The yield on the 10-year Treasury, which influences borrowing costs for various consumer loans, stood at 4.05% this morning, a decrease from 4.09% at the close on Friday. The yield is at its lowest point since early April, with increasing expectations that the Fed will implement multiple rate cuts before the year’s end.
Stocks of the leading technology firms, known for their significant impact on the overall market, were predominantly up. Shares of chip giant Broadcom climbed 5%, after surging 9% on Friday following the release of a strong earnings report. Rival Nvidia saw an increase of 2%, while Microsoft, Amazon, and Meta Platforms each experienced gains exceeding 1%. Shares of Alphabet and Tesla rose slightly, while Apple ticked lower. Trading platform Robinhood Markets surged 15% and mobile app monetization company AppLovin experienced a 10% increase following the announcement late Friday that the two companies will join the S&P 500 on Sep. 22.
Gold prices, currently at unprecedented levels, reached yet another peak this morning. Gold futures increased by 0.6%, reaching $3,675 per ounce. The U.S. crude oil benchmark, increased by 0.6% to $62.25, recovering from three straight days of declines that had driven prices to their lowest point in three months. Bitcoin recently reached $112,200, rising from an overnight low of $110,600. The cryptocurrency has faced challenges in recent weeks following its peak of over $124,000 in mid-August. The U.S. dollar index, which monitors the U.S. dollar’s performance against a selection of foreign currencies, decreased by 0.2% to 97.60.