Mega-cap Tech Leads US Stocks Higher as Dow Jones Hits Another Record High

Mega-cap Tech Stocks Drive Market Gains

Mega-cap tech stocks took the lead in the market on Monday, propelling the Dow Jones to yet another all-time high. Investors are closely monitoring interest rates following the Federal Reserve's recent shift towards a more dovish stance. With hopes of an imminent rate cut, stocks are coming off seven consecutive weeks of gains.

Mega-cap Tech Stocks Surge

On Monday, shares of major tech companies such as Nvidia, Meta Platforms, Alphabet, and Amazon experienced significant surges of around 3%. This surge comes as investors closely watch interest rates in the wake of the Federal Reserve's dovish pivot last week, which marked the seventh consecutive weekly gain for stocks.

Interest Rates and US 10-Year Treasury Yield

While the US 10-year Treasury yield saw a slight increase on Monday, it remained below 4%. In the past week, the yield had plunged nearly 30 basis points. This sharp decline followed the Federal Reserve's indication that rate cuts are more likely than rate hikes in 2024.

Quiet Week for Economic Data

This week is expected to be relatively quiet on the economic data front. The most important report, the November PCE deflator, is set to be released on Friday. Investors will be keeping a close eye on this data.

US Indexes at Closing Bell

At the 4:00 p.m. closing bell on Monday, the US indexes stood as follows:

– S&P 500: 4,740.56, up 0.45%
– Dow Jones Industrial Average: 37,306.02, up less than 0.01% (0.86 point)
– Nasdaq Composite: 14,904.81, up 0.61%

Other Market Highlights

Here are some other notable events from today:

– Adobe cancelled its plans to acquire Figma for $20 billion due to intense scrutiny from regulators in Europe.
– According to a recent note from Goldman Sachs, a period of disinflation will likely lead the Federal Reserve to cut interest rates five times in 2024.
– Cannabis stocks have had a challenging year, with the MJ PurePlay 100 Index falling 14% year-to-date, while the S&P 500 gained 23%.
– Goldman Sachs raised its 2024 year-end S&P 500 price target by 9%, just one month after forecasting a flat stock market for next year.
– Billionaire investor David Rubenstein expressed that an economic recession should not be anticipated solely based on the Federal Reserve's potential interest rate cuts.
– Goldman Sachs believes that Eli Lilly stock could more than double from its current levels, reaching a $1.2 trillion valuation as millions of people take its GLP-1 weight loss drug.

Commodities, Bonds, and Crypto

Here's a look at the performance of various commodities, bonds, and cryptocurrencies:

– West Texas Intermediate crude oil rose 1.62% to $72.94 per barrel, while Brent crude, the international benchmark, increased by 1.99% to $78.07 per barrel.
– Gold saw a 0.24% climb, reaching $2,040.50 per ounce.
– The 10-year Treasury yield rose by 3 basis points to 3.95%.
– Bitcoin experienced a slight increase of 1.32%, reaching $41,894.

In conclusion, mega-cap tech stocks played a significant role in driving US stocks higher, allowing the Dow Jones to achieve yet another record high. Investors are closely monitoring interest rates, and hopes for an imminent rate cut have contributed to the seven consecutive weeks of gains in the market.—————————————————————————————————————————————
By: mfox@businessinsider.com (Matthew Fox)
Title: Mega-cap Tech Leads US Stocks Higher as Dow Jones Hits Another Record High
Sourced From: markets.businessinsider.com/news/stocks/stock-market-news-today-dow-record-high-mega-cap-tech-2023-12
Published Date: Mon, 18 Dec 2023 21:08:02 +0000