The major averages closed the session higher on Monday, as overall market was supported by technology shares. Analysts expect that Wall Street continues to focus on recovering from the tough week.
Momentum in technology shares helped the movement of overall market. On Monday, S&P 500 saw an increase of ~1.41% to close the session at ~4,763.54 levels, with Nasdaq Composite jumping ~2.2% to sit at ~14,843.77 levels. Dow Jones Industrial Average was able to add ~216.90 points, or 0.58%. Index was settled at ~37,683.01 levels.
But why did the technology shares perform? Are investors so optimistic about the AI boom?
Well, we believe that investors are now focused on buying the dip which was seen in technology sector. In the previous week alone, this sector saw a fall of ~4% last week. Much of this decline was due to lower yields on Monday.
Coming to the stock-specific movements, Nvidia went up by ~6.4%, touching its all-time high, and Amazon went up by ~2.7% which ultimately pulled the Nasdaq higher.
Shares of Alphabet saw an increase of ~2.3% and Apple, Inc. advanced ~2.4%. Experts believe that increase was also supported by recent recommendation by Evercore ISI, recommending clients to purchase the last week’s dip.
Monday saw VanEck Semiconductor ETF jump by ~3.5%, resulting in its best day since the month of November.
Now that we know that there was some momentum in technology shares, what were the laggards?
Well, it seems that airline stocks had a tough session. Boeing, which majorly impacted the Dow’s gains, saw a fall of ~8% after temporary grounding of several of Boeing 737 Max 9 aircraft for the purposes of inspections. This comes post section of Alaska Airlines fuselage blew out.
But was the recent decline in the indexes concerning? How much potential is there in the tech stocks?
Well, experts believe that stocks were earlier overbought and, because of this, yields became oversold. Now that we have reached 2024, there has been some movement in both directions. Therefore, analysts expect that this sort of pull-back is pretty much normal.
In the past 5 days, Dow Jones Industrial Average has seen a decline of ~0.33%, while S&P 500 has increased by ~0.73%.
On the cryptos front, Bitcoin modestly passed ~$47,000 levels, with investors awaiting Securities and Exchange Commission’s decision regarding the spot Bitcoin ETF.
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