Following last Friday's uninspiring performance, the stock markets experienced an upswing on Monday, with the technology-centric Nasdaq Composite index leading the way by reaching a new record high.
By the close, the Nasdaq had come off its intraday peak yet still closed up 247.17 points, gaining 1.2% to finish at 20,173.89. Meanwhile, the S&P 500 rose by 22.99 points or 0.4%, closing at 6,074.08. Contrarily, the Dow Jones Industrial Average diverged from this trend, slipping by 110.58 points or 0.3% to settle at 43,717.48. With this decline, the Dow has now closed lower for eight consecutive sessions, marking its lowest finish in nearly a month.
The robust performance of the Nasdaq was fueled in part by strong gains in semiconductor stocks, evidenced by the Philadelphia Semiconductor Index's 2.1% jump. Broadcom (AVGO) continued its previous rally, and Micron Technology (MU) also saw impressive gains after a bullish outlook from JPMorgan, anticipating strong fiscal first-quarter results from the chipmaker, due to be announced post-market on Wednesday.
Networking stocks maintained their momentum, contributing to the NYSE Arca Networking Index's rise by 2.0% to a new closing high. Similarly, technology shares rose in anticipation that the Federal Reserve might adjust interest rates during Wednesday's monetary policy meeting. The CME Group's FedWatch Tool forecasts a 95.4% probability that the central bank will cut rates by another 25 basis points. Market participants will be keenly observing the Fed's statement and economic forecasts, particularly those related to interest rates.
Conversely, oil stocks experienced a marked decline due to falling crude oil prices, which pulled the NYSE Arca Oil Index down by 2.9%. This decline in energy shares—encompassing telecom, oil services, and natural gas sectors—partially counterbalanced the upward momentum seen in the tech arena.
**International Markets:**
On the international stage, Asia-Pacific stock markets largely fell on Monday. Japan's Nikkei 225 closed marginally below the flatline, China's Shanghai Composite Index dipped by 0.2%, and Hong Kong's Hang Seng Index dropped by 0.9%. European markets mirrored this downward trend; the French CAC 40 decreased by 0.7%, while both Germany's DAX Index and the U.K.'s FTSE 100 Index declined by 0.5%.
In the bond market, U.S. Treasuries showed little direction, resulting in a neutral session finish. The yield on the ten-year Treasury note, inversely related to its price, nudged down slightly by less than a basis point, closing at 4.397%.
**Future Outlook:**
Tuesday's market activity might be shaped by reactions to upcoming retail sales and industrial production data. However, trading could remain relatively muted as investors gear up for the Federal Reserve's announcement on Wednesday.
The material has been provided by InstaForex Company -
www.instaforex.com
