S&P 500, Nasdaq end up as Nvidia surge leads megacap higher
Nasdaq closed higher on Monday as shares of chipmaker Nvidia surged following a bullish note from Morgan Stanley, leading gains in other megacap growth stocks. Nvidia jumped 7.1%, its biggest single-day increase since May 25, when its 24% surge on a stellar revenue forecast pointed to the game-changing potential of artificial intelligence. The rally in the chipmaker's stock pushed the information technology index 1.85% higher, making it the strongest of 11 S&P 500 sector indexes.
Other megacap growth stocks rose, including Alphabet, up 1.4% and Amazon.com, up 1.6%. Chipmaker Micron Technology ended with a 6.1% gain. The S&P 500 climbed 0.58% to end the session at 4,489.72 points.
The Nasdaq gained 1.05% to 13,788.33 points, while Dow Jones Industrial Average rose 0.07% to 35,307.63 points. «It's the first day in a while that tech has really significantly outperformed,» said Jay Hatfield, CEO of Infrastructure Capital Advisors in New York. «That's indicative of the fact that you have this blockbuster Nvidia report coming up and that could support the tech market pretty substantially.» Nvidia, one of several tech companies rallying this year on optimism about AI, is due to report quarterly results next week.
«NVIDIA remains our top pick, with a backdrop of the massive shift in spending towards AI, and a fairly exceptional supply-demand imbalance that should persist for the next several quarters,» Morgan Stanley analysts said in a note on Monday. Tesla fell 1.2% after the electric automaker said it had cut prices in China for some Model Y versions. Market focus this week will be on quarterly earnings from major U.S.
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