US stocks tilted higher on Monday as the Nasdaq Composite (^IXIC) clinched a record close buoyed by shares of Nvidia (NVDA) ahead of the chipmaker's highly anticipated earnings later this week.
The broader S&P 500 (^GSPC) index rose 0.1% while the Dow Jones Industrial Average (^DJI) dipped below 40,000, weighed on by a drop in JPMorgan (JPM) shares. The blue-chip benchmark dropped 0.5% following a record close on Friday.
A key question for investors is whether that outlook is sustainable or whether it's getting ahead of where the Fed is headed. A key test comes on Wednesday, with the release of minutes from the Fed meeting in May, as Yahoo Finance's Josh Schafer reports.
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On Monday Fed Vice Chair Philip Jefferson and Fed Vice Chair of Supervision Michael Barr pointed to disappointing inflation in the first quarter as a reason for holding rates where they are, allowing more time for restrictive policy to work.
The market is bracing for heavily anticipated quarterly results from Nvidia on Wednesday, eyed as a key catalyst for the rally in stocks. Expectations for the AI chipmaker's earnings and revenue are sky-high — for growth of 400% and 240%, respectively — and the focus is on whether it can again live up to the hype.
JPMorgan stock slid more than 4% following the bank's investment day where CEO Jamie Dimon signaled his retirement may be closer than previously anticipated by Wall Street.
At the same time, rallies in commodity markets are fueling fears of a knock-on rise for US inflation. Copper prices on the LME topped $11,000 a ton for the first time, soaring to their highest-ever level as a looming supply shortage draws in investors. Meanwhile, gold prices (GC=F) jumped to tap an intraday record at around $2,450 an ounce.
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Ines Ferré
Nasdaq closes at record high, Dow dips below 40,000 level
US stocks ended the session mixed on Monday with the Nasdaq Composite (^IXIC) closing at a record high while the Dow Jones Industrial Average (^DJI) fell below 40,000 after closing above the landmark level for the first time on Friday.
The tech-heavy Nasdaq Composite climbed about 0.7% as Nvidia (NVDA) shares gained ahead of the chipmaker's highly anticipated earnings later this week. The S&P 500 (^GSPC) rose 0.1% while the Dow fell 0.5%.
JPMorgan (JPM) stock weighed on the blue-chip index after the bank's investor day. In answer to a question about his retirement, CEO Jamie Dimon signaled it's closer than previously anticipated by Wall Street.
Dimon said "the timetable isn’t five years anymore." He added succession plans are “well on the way."
Microsoft (MSFT) gained about 1% after the company announced a new category of PCs called Copilot+ PCs. The new variety of computers come equipped with so-called AI PC chips and run Microsoft's latest version of Windows 11 and its Copilot AI software.
Bitcoin (BTC-USD) gained more than 2% over the past 24 hours. The cryptocurrency climbed back above $68,000 per token Monday, a level not seen in over a month.
Meanwhile, metals continued their climb, with gold (GC=F) touching a record $2,450 per ounce. Silver (SI=F) rallied to a near 12-year high, rising above $32 per ounce.
Copper (HG=F) also hit record highs during Monday trading.
Ines Ferré
S&P 500, Nasdaq hover near highs
The markets were sitting near records on Monday. With just 10 minutes left of the trading session, the S&P 500 (^GSPC) was points away from its prior record close from last Wednesday of 5,308.15.
Meanwhile the Nasdaq Composite (^IXIC) was on track to top its prior record close of 16,742.39 on May 15.
The Dow Jones Industrial Average (^DJI) was down about 0.4% after closing at a record last Friday. The blue-chip index was weighed by JPMorgan (JPM), down 4% following the bank's investor day.
Ines Ferré
JPMorgan stock falls 4% during bank's investment day, CEO hints at retirement
JPMorgan (JPM) stock slid to session lows Monday after CEO Jamie Dimon signaled his retirement is closer than previously anticipated by Wall Street.
In response to a question during the bank's investment day, Dimon said "the timetable isn’t five years anymore." He added succession plans are “well on the way."
Wall Street has long speculated who will take over once Dimon retires and when that may happen. In the past, whenever asked about his retirement, the CEO has joked, "In five years."
JPMorgan stock sank to session lows in afternoon trading. The Dow component dragged on the broader blue-chip index, which fell roughly 0.4%.
Ines Ferré
Microsoft debuts new Copilot+ PCs using OpenAI's GPT-4o while taking shots at Apple
Microsoft (MSFT) is going all in on AI for the PC.
The company on Monday announced a new category of PCs called Copilot+ PCs, a new variety of computers equipped with so-called AI PC chips and running Microsoft's latest version of Windows 11 and its Copilot AI software.
Microsoft also revealed that its Copilot+ PCs will now run on OpenAI's GPT-4o model, allowing the assistant to interact with your PC via text, video, and voice. Users will also be able to share their screen with Copilot and have a natural conversation with the app.
"The richest AI experiences will harness the power of the cloud and the edge working together in concert. This in turn will lead to a new category of devices that turn the world itself into a prompt," Microsoft CEO Satya Nadella said during the company's Build event on Monday. "For us, this vision starts with our most beloved and most widely used canvas: Windows."
Microsoft also touted the performance of its Copilot+ PCs and hammered home what it sees as a performance advantage over similar Apple (AAPL) devices.
Bitcoin (BTC-USD) gained more than 2% over the past 24 hours. The cryptocurrency climbed back above $68,000 per token Monday, a level not seen in over a month.
Bitcoin has rallied about 17% since the start of May.
Nvidia stock was a top ticker on Yahoo Finance's trending tickers page Monday. The chip giant is set to report earnings on Wednesday after the closing bell. Investors have high expectations for the AI darling as the highly anticipated print could be a market-moving catalyst.
"AI is going to change things as much as the internet did when it came about 30, 40 years ago," Randy Frederick, market strategist and founder of RandyFrederickMedia.com, told Yahoo Finance on Monday.
Li Auto shares plunged 12% Monday after the Chinese electric vehicle maker posted a drop in quarterly earnings compared to the same period last year. The company's sales also missed analyst expectations.
Shares of Norwegian Cruise Line jumped 8% after the company raised its full-year earnings outlook for the second time in a month amid record bookings. The cruise operator said its quarterly earnings per share will now come in at $1.42, about $0.10 higher than a prior estimate.
“We have continued to see very strong demand and record bookings,” said Norwegian Cruise Line's CFO Mark Kempa in a statement.
Morgan Stanley's Mike Wilson is done calling for US stocks to fall off a cliff.
After sitting at one of the lowest S&P 500 (^GSPC) year-end targets for the past year, Morgan Stanley's chief investment officer changed his tune in a note to clients on Sunday.
Wilson now sees the S&P 500 hitting 5,400 in the next 12 months, up from his prior call that the index would fall to 4,500. Wilson's new target reflects about 2% upside in the index over the next 12 months, with valuations falling and earnings continuing to rise.
"Our 2024 and 2025 earnings growth forecasts (8% and 13%, respectively) assume healthy, mid-single-digit top-line growth in addition to margin expansion in both years as positive operating leverage resumes (particularly in 2025)," Wilson wrote in the note.
"Modest valuation compression (from ~20x to ~19x in the base case) as earnings adjust higher is typical in a mid-to-late-cycle backdrop (occurred in the mid-1990s, mid-2000s, and 2018 most recently)."
Two Federal Reserve governors reiterated Monday they see holding rates at current levels until there is more evidence inflation is falling, the latest central bank officials to stress a higher-for-longer stance.
Fed Vice Chair Philip Jefferson and Fed Vice Chair of Supervision Michael Barr pointed to disappointing inflation in the first quarter as a reason for holding rates where they are, allowing more time for restrictive policy to work.
"I think we are in a good position to hold steady and closely watch how conditions evolve," Barr said in a speech at an Atlanta Fed conference being held in Florida.
The Nasdaq Composite (^IXIC) hit a new intraday high Monday as tech stocks gained.
The S&P 500 Technology Sector Select (XLK) also touched a new record during the session. XLK is up more than 14% year to date while the Nasdaq is up more than 13% during the same period.
Semiconductor-related stocks rose Monday ahead of Nvidia's (NVDA) highly anticipated earnings due out on Wednesday after the market close.
Ines Ferré
Nvidia gains 2% ahead of chip giant's earnings this week
Nvidia (NVDA) stock gained more than 2% ahead of the chipmaker's highly anticipated earnings report expected on Wednesday.
Other chipmakers in the green territory on Monday include Micron (MU) and Advanced Micro Devices (AMD). Gains in semiconductor stocks helped the Nasdaq Composite (^IXIC) climb 0.5% during the morning session.
Semiconductors gain ahead of Nvidia's earnings expected on Wednesday
Ines Ferré
Stocks little changed as Dow dips below 40,000 level
US stocks opened mixed Monday as the Dow Jones Industrial Average (^DJI) struggled to add to Friday's gains.
The blue-chip index opened slightly below the flatline after closing above 40,000 for the first time on Friday.
The S&P 500 (^GPSC) gained slightly while the tech-heavy Nasdaq Composite (^IXIC) rose roughly 0.4%.
Investors have their eye on Nvidia (NVDA) earnings due out on Wednesday. Traders are also watching the metals market after gold (GC=F) touched new intraday highs this morning. Silver (SI=F) hovered around 12-year highs and copper (HG=F) also gained amid an energy transition that will require metals for industrial use.
Ines Ferré
Gold briefly touches record high as metals market continues to climb
Gold (GC=F) rose just above a record $2,450 per ounce in early Monday's trading before paring gains.
The precious metal rallied to surpass its April nominal highs amid expectations the Federal Reserve will cut interest rates this year. High demand from central banks and Asian buyers has also helped gold prices rise roughly 17% year to date.
Meanwhile, silver (SI=F) hovered at its highest level since December 2012, briefly surpassing $32 an ounce on Monday after a strong rally on Friday. Unlike gold, silver has industrial uses, for purposes such as building solar panels.
Copper (HG=F) hit record highs Monday on concerns of a supply shortage amid an energy transition. Year to date, the metal is up about 30%. While the rally has likely attracted speculators in recent days, the supply fundamental hasn’t changed, according to Wells Fargo head of real asset strategy John LaForge.
“We frankly are not producing enough copper, and yet there are buyers everywhere for this copper across the globe,” LaForge recently told Yahoo Finance.
“It doesn’t matter if it’s China, India, the United States. Everyone is pushing to go green, and copper is the No. 1 metal for when it comes to that type of future.”
Brian Sozzi
Watching Dr. Copper
If the economy is poised for a preelection slowdown, you aren't seeing it industrial metal copper.
Copper prices have touched record highs.
Copper play Rio Tinto (RIO) is eyeing a one-year high.
A five-year look at copper prices shows record highs. (Yahoo Finance)
Brian Sozzi
Nvidia expectations are super high
We awake today to find Nvidia (NVDA) as the third trending ticker on the Yahoo Finance platform ahead of its earnings report on Wednesday.
Clearly, the retail investor community is bracing for another impressive earnings day (results + guidance) showing from the AI darling.
Important point, however, from Bank of America Vivek Arya this morning: Great from Nvidia may not be great enough.
Says Arya:
"Based on bullish investors we spoke with, expectations seem well-above consensus estimates as usual, with $26 billion in sales expected for reported fiscal first quarter (April), or 6% ahead of consensus $24.6 billion, with guidance expected to be close to $28 billion or 5% ahead of $26.7 billion. Second, gross margins are expected to peak at 77% in the fiscal first quarter, with well-expected outlook for a decline to 75%-76% in the fiscal second quarter (normalization after some one-off factors pushed it above 75% last few quarters). However, even if Nvidia were to potentially deliver on these bullish expectations, the stock could still react unfavorably as bears will likely complain that: 1) Nvidia's sequential sales growth will decelerate to "only" 7%-8% quarter over quarter in the fiscal second quarter (July) outlook, well below the mid-teens or better the last few quarters, 2) Gross margin is peaking and decline is a sign of pricing pressure, unfavorable mix (more China H20 shipments and/or more inference units) and slowing demand/easing supply."
Brian Sozzi
Nvidia memories
Deutsche Bank strategist Jim Reid with a moment of reflection ahead of Nvidia's (NVDA) closely watched earnings report on Wednesday:
"Remember this time last year the mainstream AI frenzy began around the time of Nvidia's results where the company climbed over 20% on results day and has now tripled in value over 12 months."
Nvidia shares are up 197% since that May 24, 2023, earnings report.
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Yahoo Finance 
