Nasdaq starts the week strong, Dow Jones closes above 53,000 for the first time

4:15pm: Dow at record high

While the Nasdaq led the gains on Monday, it was the Dow Jones breaking records, closing up 0.3% above 53,000 points for the first time at 53,055 points. The Nasdaq was up 1.15 at 26,121 points while the S&P 500 was up 0.7% at 7,537 points.

3:30pm: Proactive news headlines

• VivoPower PLC (NASDAQ:VIVO, FRA:51J) announced on Monday that it is conducting a technical and commercial feasibility study to evaluate the integration of a battery energy storage system at its 41.5-megawatt Mo i Rana data center in Northern Norway, targeting up to approximately $4 million in incremental annualized EBITDA.

• Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF) has completed construction and started up its Generation 2.0 Graphene Manufacturing Technology Plant, a new production facility designed to increase the company’s graphene manufacturing capacity.

• Grey Matters Health (CSE:GREY, OTCQB:AGNPD, FRA:AGW0) announced that it has taken delivery of its first brain-dedicated positron emission tomography (PET) scanner for its NovaScan Neuroimaging Clinics flagship location in Davie, Florida, as the company prepares to open what it says will be the first US clinic focused exclusively on brain-only PET imaging.

• AtaiBeckley Inc. (NASDAQ:ATAI, XETRA:9VC) said on Monday that it has completed dosing the final patient in its Phase 2b Elumina clinical trial evaluating investigational therapy VLS-01 for adults with treatment-resistant depression (TRD), with topline results expected in the fourth quarter of 2026.

2:30pm: Market movers

• Solstice Advanced Materials (Nasdaq: SOLS) shares fell nearly 15% on Monday after the company announced a $14.5 billion cash-and-stock agreement to acquire Element Solutions (NYSE: ESI), in a deal aimed at expanding its footprint in advanced materials for electronics and AI infrastructure.

• TeraWulf (NASDAQ:WULF) shares rose 13% on Monday after the company announced a long-term artificial intelligence infrastructure lease with Anthropic alongside the sale of a majority stake in a joint venture, moves that significantly expand contracted revenue while recycling capital into new development projects.

• Micron Technology Inc (NASDAQ:MU) and Ford Motor Company (NYSE:F) have entered into a long-term Strategic Customer Agreement aimed at strengthening the supply of memory and storage solutions for Ford’s future vehicle production, the companies said.

• Broadcom Inc (NASDAQ:AVGO, XETRA:1YD) has extended its chip partnership with Apple Inc (NASDAQ:AAPL, XETRA:APC) through 2031, expanding a long-running supply agreement covering custom semiconductor development and production.

• Microsoft Corp (NASDAQ:MSFT) shares fell after the software giant said it would cut around 4,800 jobs, or 2.1% of its global workforce, as it restructures to focus on its biggest growth priorities.

12:30pm: Tech revival

Renewed confidence in the tech sector saw the Nasdaq lead Wall Street higher in the early afternoon on Monday. The index added 1.3% at 26,177 points, while the S&P 500 was up 0.8% at 7,541 points and the Dow Jones was up 0.1% at 52,950 points.

“It has been a lugubrious start to the week for stock markets, particularly in the US and the UK, but things have begun to liven up, particularly for last week’s also-rans the Nasdaq and the Nikkei 225,” IG chief market analyst Chris Beauchamp said.

“Jitters about tech and normal rotation action within sectors took the wind out the rally for both indices, but they are leading the way once again in afternoon trading, an indication that the rally might be poised for another leg higher.”

11:02am: Week ahead 

Wall Street enters the week with investors focused on the start of the second quarter earnings season, the Federal Reserve’s latest meeting minutes and a handful of economic releases that could offer fresh insight into the outlook for interest rates, economic growth and the artificial intelligence-driven rally that has powered US equities.

The week’s key events include Wednesday’s release of the minutes from the Federal Open Market Committee’s June meeting, the ISM services purchasing managers index, earnings from companies including PepsiCo and Levi Strauss & Co as well as several developments in the semiconductor industry that could influence sentiment toward AI-related stocks.

Kathleen Brooks, research director at XTB, said the Fed minutes will be one of the week’s main catalysts as investors look for evidence of how policymakers are weighing persistent inflation risks against signs of a slowing labor market. She said the minutes could shed more light on the divide between officials focused on inflation and those increasingly concerned about employment.

Brooks also said investors will be monitoring the ISM services index for signs of how the broader US economy is performing beyond the AI-driven investment boom. She said particular attention will be paid to the employment and new orders components, with weaker readings potentially reinforcing concerns about slowing economic activity.

Ipek Ozkardeskaya, senior analyst at Swissquote, also expects technology valuations to remain a central market theme this week. She said investors will continue debating whether the sector’s strong gains remain supported by fundamentals or whether valuations are becoming stretched.

She pointed to SpaceX’s addition to the Nasdaq-100 index as another event likely to attract investor attention, saying the company’s inclusion and the start of Wall Street research coverage following the end of its quiet period could increase volatility in the index. Ozkardeskaya said SpaceX’s high valuation, concentrated ownership structure and relatively limited public float may fuel further debate about the composition of major US equity benchmarks.

Alongside the Fed minutes, investors will also hear from several Federal Reserve officials during the week. According to Deutsche Bank economists, speeches from Governor Christopher Waller, New York Fed President John Williams and Dallas Fed President Lorie Logan will be monitored for clues on how policymakers are interpreting recent economic data and whether Chair Kevin Warsh’s preference for less forward guidance is leading to a more restrained approach to Fed communications.

Deutsche Bank said the relatively light economic calendar means monetary policy messaging could have an outsized influence on markets, with investors looking for any indication of how officials’ views on inflation, growth and the labor market are evolving heading into the second half of the year.

9.55am: Nasdaq opens higher, Dow dips

It’s a mixed start to the week’s trading for Wall Street equities, with the Nasdaq powering 1% higher, while the S&P is up 0.4%, but the Dow Jones has slipped 0.3% after closing at a record high before the Independence Day holiday.

Chip stocks are driving the Nasdaq higher in early trade, with storage groups Western Digital and Seagate jumping 7.7% and 5%, while Broadcom and AMD fall over 6%, with ARM Holdings 5.5% higher.

Semiconductors are up too, with Intel, ASML, Micron, Texas Instruments and Applied Materials all advancing.

Defensive names are weighing on the Dow, with Nike off 4% and healthcare, financial and retail stocks Johnson & Johnson, Visa, Home Depot, and Amgen lower.

8am: Rotation back into Nasdaq tech expected

US stocks are predicted to see a mixed start on Monday, with investors rotating back into technology shares after a softer-than-expected jobs report last week eased concerns that the Federal Reserve could raise interest rates again.

Nasdaq futures were 1.1% higher ahead of the first trading session of the week, while S&P 500 futures gained 0.4%. Dow Jones futures were just below flat, down 0.04%.

Monday’s opening bell will be rung from the White House’s Oval Office to mark the launch of ‘Trump Accounts’, new tax-advantaged investment accounts for children, with President Donald Trump joining exchange executives for the ceremony.

This followed a holiday-shortened week, which the Dow ended the final session up 1% to a record closing high of 52,845, while the Nasdaq fell 0.8% to 25,832 points, and the S&P dropped 0.1% to 7,476 points.

Most damage was in the memory stocks, after news emerged that Apple has been permitted to buy memory from China. SanDisk fell 13% over the week, Micron 14% and Intel 6.5%.

Investors are likely to still be digesting the non-farm payrolls report, which showed 57,000 new jobs added last month, well below expectations and accompanied by downward revisions to the previous two months.

The data, combined with lower oil prices, has reduced expectations of further rate rises, although hopes for imminent cuts have also faded.

Attention is beginning to turn to earnings season, with Samsung’s results on Tuesday seen as an early test of demand for artificial intelligence infrastructure. Consumer names such as PepsiCo, Levi’s and Delta Air Lines report this week, while Wall Street’s big banks begin submitting their numbers next week.

SpaceX will enter the Nasdaq 100 index from tonight, which is expected to increase the benchmark’s volatility. This week also marks the end of the quiet period for the company as Wall Street firms will start publishing their first research notes.

In Europe, stocks briefly touched record highs in early trading before retreating, with London’s FTSE 100 and Spain’s IBEX 35 leading the declines.