The US stock market saw divergent movements on Monday, with the S&P 500 and Dow Jones Industrial Average reacting differently to sector-specific shifts, while Nvidia’s decline weighed heavily on the Nasdaq Composite.
The benchmark S&P 500 (^GSPC) declined by 0.3%, contrasting with the tech-heavy Nasdaq Composite (^IXIC), which fell over 1%, largely due to Nvidia’s more than 6% slide. In contrast, the Dow Jones Industrial Average (^DJI) surged 0.7%, gaining over 200 points as investor interest shifted towards energy and financial sectors.
Despite the overall positive performance of the quarter, with the S&P 500 up by more than 4% and the Nasdaq rallying approximately 7% on the strength of AI-driven advancements, signs of strain have emerged. Nvidia, a standout performer earlier in 2024, has dropped by more than 12% from its recent peak.
Looking ahead, macroeconomic indicators and political developments in the US are expected to influence market sentiment. This week, all eyes are on the first debate between US President Joe Biden and presumptive Republican nominee Donald Trump, alongside the impending release of the Personal Consumption Expenditures (PCE) index on Friday. Economists anticipate a modest 0.1% increase in the core PCE measure, potentially alleviating Federal Reserve concerns about the need for imminent rate cuts.
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