What Happened Today
Stocks wobbled to start a busy week of inflation reports. Monday’s trading was quieter relative to last week’s tumultuous trading, with volatility calming.
Inflation may be the most important factor this week as investors anticipate what the Federal Reserve will do at its next meeting in September. Markets are currently pricing in either a quarter-point interest-rate cut or a half-point reduction, according to the CME FedWatch tool.
Key Events
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The stock market wobbled to start the week as Wall Street awaits a key stretch of economic and inflation data.
The Dow fell 140 points, or 0.4%. The S&P 500 was flat. The Nasdaq Composite was up 0.2%.
The yield on the 2-year Treasury note dropped to 4.015%. The 10-year yield was down to 3.908%.
WTI crude oil futures were up 3.9% as markets fretted about conflict in the Middle East. The Wall Street Journal and other outlets reported Israel’s military was on high alert about the potential for attacks by Iran.
Stocks were sleepy for most of the day. Technology and energy were the index’s top performing sectors. Things would have been worse for the S&P 500 if not for strong gains by chip stocks including Super Micro Computer and Nvidia.
The market has been hectic in recent weeks as traders fretted about the economy, so today’s relatively calm session was a rare reprieve. Things may pick back up in the days ahead. The Bureau of Labor Statistics will release the producer price index tomorrow and the much-anticipated consumer price index on Wednesday. We’ll also get updates on retail sales and consumer sentiment later this week.
Now, this is what August is supposed to be like for the stock market.
The big three indexes were sleepy on Monday, lolling around without much direction. The Dow was down 185 points, or 0.5%. The S&P 500 was down 0.1%. The Nasdaq Composite was up 0.2%.
Breadth was weak, with only 128 S&P 500 stocks set to close higher. Strong gains from Super Micro Computer and Nvidia helped bolster the index a bit. Energy stocks were also rising with a spike in crude oil prices. WTI crude rose 2.8%, to $79.05.
For the first time in a while, the stock market was calm. The market’s fear gauge, the VIX, was back down below 20—though barely at 19.96. Wall Street still has worries about the economy and conflict in the Middle East, but for now, the stock market is enjoying a true summer break from recent bouts of frenzied trading.
Here come the chip stocks!
The Nasdaq was up 0.9% and pulling ahead with help from some of the spring’s shining stars: Super Micro Computer was up 7.8% and Nvidia was up 5%. The iShares Semiconductor ETF was up 1.5%.
With the S&P 500 up 0.5%, its technology sector was running away with a 1.3% gain. The energy sector was also up 0.4% as oil futures rose. The Dow, which doesn’t have key chip stocks, was essentially flat.
This isn’t necessarily good news. Only 231 S&P 500 stocks were trading higher on the day.
Wall Street will want to see more gains from stocks not named Nvidia or Super Micro. But after both took a beating over the past month, tech investors finally have something to cheer about.