Nvidia rally pushes Nasdaq to new record

Nvidia shares rallied strongly in Monday trading ahead of its quarterly earnings result due out on Wednesday, leading the Nasdaq to a new record close.

The Nasdaq finished the day up 0.65 per cent setting a new record close at 16,794.87. The S&P 500 closed up 0.09 per cent and the Dow closed down 0.49 per cent.

Nvidia shares rose more than 2 per cent on Monday on news several investment banks have increased their price target ahead of its earnings report on Wednesday. Nvidia’s market cap is now the third-largest in the S&P 500 at $2.3 trillion.

In other company news, JPMorgan shares fell 4.5 per cent on comments from CEO Jamie Dimon that his retirement may be sooner than previously stated. Dimon also ruled out any buyback for the foreseeable future.

Microsoft also announced it has introduced new software and AI features on its computers going forward in an effort to compete with Alphabet and Apple. Microsoft’s new category of AI enabled PCs will be called Copilot+PC.

The machines from Microsoft’s Surface line and manufacturing partners will offer more power and will be 58 per cent faster than Apple’s top-of-the-line Macbook Air M3, the company said.

US stocks are coming off a strong week, with the S&P 500 posting a four-week winning streak as it notched record highs. The Dow also rose for a fifth straight week.

The rally in the US dollar reversed as investors anticipate that decreasing inflation in the US will allow the Federal Reserve to reduce interest rates. After peaking with a 5 per cent gain by mid-April, the dollar is set for its first monthly decline in 2024, following a Wednesday announcement of inflation easing as forecasted, easing concerns over the Fed's ability to manage price growth.

Turning to commodities, silver prices surged past $30 per ounce last week, reaching their highest level in over a decade, driven by heightened investor interest amidst a favourable macroeconomic environment and projections of a fourth consecutive annual market deficit.

Turning to US sectors, the best performing sector was Technology which closed 1.32 per cent higher. The worst performer was financials which closed down 1.21 per cent.

Futures

The SPI futures are pointing to a 0.14 per cent fall.

Currency

One Australian dollar at 7am was buying 66.70 US cents.

Commodities

Gold has added 0.48 per cent. Silver has added 2.42 per cent. Copper has gained 1.02 per cent. Oil has lost 0.47 per cent.

Figures around the globe

European markets closed higher. London’s FTSE added 0.05 per cent, Frankfurt gained 0.35 per cent, and Paris closed 0.35 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei added 0.73 per cent, Hong Kong’s Hang Seng added 0.42 per cent while China’s Shanghai Composite closed 0.54 per cent higher.

Yesterday, the Australian share market closed 0.63 per cent higher at 7,863.66.

Ex-dividends

Two companies are going ex-dividend today. Amcor (ASX:AMC) is paying 19.32 cents unfranked. Aneka Tambang (ASX:ATM) is paying 4.83 cents unfranked.

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
Futures

The SPI futures are pointing to a 0.14 per cent fall.

Currency

One Australian dollar at 7am was buying 66.70 US cents.

Commodities

Gold has added 0.48 per cent. Silver has added 2.42 per cent. Copper has gained 1.02 per cent. Oil has lost 0.47 per cent.

Figures around the globe

European markets closed higher. London’s FTSE added 0.05 per cent, Frankfurt gained 0.35 per cent, and Paris closed 0.35 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei added 0.73 per cent, Hong Kong’s Hang Seng added 0.42 per cent while China’s Shanghai Composite closed 0.54 per cent higher.

Yesterday, the Australian share market closed 0.63 per cent higher at 7,863.66.

Ex-dividends

Two companies are going ex-dividend today. Amcor (ASX:AMC) is paying 19.32 cents unfranked. Aneka Tambang (ASX:ATM) is paying 4.83 cents unfranked.

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

Disclaimer

The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.
Copyright 2024 – Finance News Network