Stock market today: Dow ends higher as Nvidia leads tech rally on dip-buying fever
Investing.com — The Dow closed higher Monday, as weakness in banks was offset by renewed demand for tech amid a surge in Nvidia (NASDAQ:NVDA) ahead of a slew of incoming economic data set to provide further insight on the consumer.
The Dow Jones Industrial Average rose 0.1%, or 26 points, Nasdaq rose 1%, and the S&P 500 was 0.6% higher.
The recent dip in tech attracted dip buyers, particularly in semiconductor stocks, with Nvidia soaring more than 7% after Morgan Stanley said the recent dip in the chipmaker was a buying opportunity.
The vote of confidence from Morgan Stanley comes even as concerns linger about bloated inventory and waning demand for chips amid an economic stumble in China.
But rising demand for AI is likely to boost data center spending, Morgan Stanley adds, bolstering Nvidia’s growth.
Apple Inc (NASDAQ:AAPL), Meta Platforms Inc (NASDAQ:META), Alphabet Inc Class A (NASDAQ:GOOGL), and Microsoft Corporation (NASDAQ:MSFT), meanwhile, were also in demand following their recent weakness.
The U.S. 10-year Treasury yield jumped to 4.204%, its highest level since Nov. 22, but those gains were short-lived as investors looked ahead to the latest consumer data due Tuesday.
Retail sales data for July is expected to show that the consumer remains resilient. Fresh signs of a strong U.S. consumer, which makes up about 70% of economic of growth, would further dent bets that the Federal Reserve is unlikely to resume rate hikes later this year.
United States Steel Corporation (NYSE:X) jumped more than 36% after the rejecting a more than $7 billion buyout from Cleveland-Cliffs Inc (NYSE:CLF). The steel maker detailed plans to review strategic options.
Esmark, meanwhile, made a $35 a share offer for US Steel.
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