Stock market today: Dow slips as consumer staples, energy fall to offset tech
Investing.com — The Dow closed lower Monday as weakness in consumer staples and energy offset an Nvidia-led rebound in tech despite a jump in Treasury yields to 16-year highs ahead of potential clues on monetary policy later this week.
The Dow Jones Industrial Average fell 0.1%, 37 points, Nasdaq rose 1.6%, and the S&P 500 rose 0.7%.
Tech stocks were led higher by a more than 8% surge in NVIDIA Corporation (NASDAQ:NVDA) ahead of the chipmaker’s quarterly results due Wednesday.
Nvidia has been riding the wave of AI optimism since surprising Wall Street with blowout guidance in the fiscal quarter.
Ahead of the chipmaker’s third-quarter results, some are expecting more of the same amid optimism of an AI-led boost to data center growth.
«While we see hyperscale as being the largest consumer of AI training servers; demand for AI GPUs from entities beyond cloud services providers (emerging AI clouds, sovereign states, large enterprises, etc.) increased substantially from late March through the course of CQ2,” Wedbush said in a recent note.
Treasury yields started the week on the front foot, with the 10-year Treasury yield surging to a more than 16-year high as investors anticipate that Federal Reserve chairman Jerome Powell may hint that further work is likely needed to slow inflation following recent signs of healthy economic growth.
“With the market broadly on board with at least one additional rate hike by year-end, Powell is likely to emphasize the need to remain at a sufficiently restrictive level for some time with still ‘significant’ upside risks to inflation,” Stifel said in a note.
Tesla Inc (NASDAQ:TSLA) rose more than 7% as investors bought a recent dip in the electric vehicle maker on the heels of fresh positive
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