Stocks moved mostly higher over the course of the trading session on Monday, regaining ground following recent weakness. Technology stocks helped lead the rebound, resulting in a substantial gain by the Nasdaq.
The Nasdaq surged 206.81 points or 1.6 percent to 13,497.59 and the S&P 500 climbed 30.06 points or 0.7 percent to 4,399.77, while the narrower Dow staged a recovery attempt from early weakness but still closed down 36.97 points or 0.1 percent at 34,463.69.
The spike by the Nasdaq came as traders picked up tech stocks at reduced levels following recent weakness, with the index bouncing off its lowest closing level in two months.
Cybersecurity company Palo Alto Networks (PANW) posted a standout gain after reporting better than expected fiscal fourth quarter earnings.
Shares of Nvidia (NVDA) also moved notably higher after HSBC reiterated a Buy rating on the chipmaker’s stock and raised its price target.
Meanwhile, a steep drop by Johnson & Johnson (JNJ) contributed to the dip by the Dow, with the healthcare giant slumping by 3.0 percent.
Johnson & Johnson said its offer to its shareholders to exchange their shares of J&J common stock for shares of Kenvue (KVUE) common stock owned by the company was oversubscribed.
Trades continued to look ahead to the economic summit in Jackson Hole, Wyoming, where major central bankers are congregating later in the week to deliberate on monetary policy.
Federal Reserve Chair Jerome Powell is scheduled to speak on the economic outlook before the Jackson Hole Economic Symposium on Friday.
Sector News
Semiconductor stocks moved sharply higher over the course of the session, resulting in a 2.8 percent spike by the Philadelphia Semiconductor Index.
Significant strength also emerged among software stocks, as reflected by the 1.8 percent jump by the Dow Jones U.S. Software Index.
Biotechnology and computer hardware stocks also turned in strong performances on the day, contributing to the surge by the Nasdaq.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan’s Nikkei 225 Index rose by 0.4 percent, while China’s Shanghai Composite Index slumped by 1.2 percent.
The major European markets also finished the day mixed. While the U.K.’s FTSE 100 Index edged down by 0.1 percent, the German DAX Index crept up by 0.2 percent and the French CAC 40 Index climbed by 0.5 percent.
In the bond market, treasuries pulled back sharply following the rebound seen last Friday. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 9.1 basis points to a fifteen-year closing high of 4.342 percent.
Looking Ahead
The economic calendar remains relatively light on Tuesday, although traders are likely to keep an eye on a report on existing home sales.
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