Dow, S&P 500, Nasdaq Futures Edge Higher After Nasdaq Climbs To Record High: SPCX, USAR, CEG, NVAX Stocks In Focus
-
Shares of Nvidia and Broadcom rose more than 2% each at close on Monday, while Meta and Microsoft rose more than 1% each, and SpaceX stock surged over 7%.
-
At the time of writing, the 10-year U.S. Treasury yield was trading at 5.313%, and the 30-year Treasury bond yield was trading at 5.67%.
-
On the economic front, markets will watch the U.S. Federal Open Market Committee (FOMC) meeting minutes, scheduled for release on Wednesday.
U.S. stock futures traded higher in the overnight session late Monday, shortly after the Nasdaq index hit a record high during regular trading hours as technology stocks posted strong gains.
As of 10:22 p.m. EDT, Dow futures were up 0.15%, the S&P 500 futures had gained 0.09%, while Nasdaq-100 futures rose 0.07%.
On Monday, all three benchmark indexes closed higher. The Nasdaq Composite led the climb, hitting an all-time high during trading hours and ending the session 1.05% up. The Dow Jones Industrial Average rose 0.18% at close, while the S&P 500 gained 0.66%.
|
Index |
Move |
Close |
|
Dow Jones Industrial Average |
0.18% |
51,267.90 |
|
S&P 500 |
0.66% |
7,773.95 |
|
Nasdaq Composite |
1.05% |
27,477.31 |
Key US Market Drivers
Technology stocks and U.S. long-dated Treasury yields dominated the market narrative at the start of the week.
A booming demand for artificial intelligence has bolstered a climb in tech stocks. Nvidia Corp. (NVDA) and Broadcom Inc. (AVGO) rose more than 2% at close on Monday, while Meta Platforms Inc. (META) and Microsoft Corp. (MSFT) rose more than 1%.
SpaceX (SPCX), meanwhile, climbed more than 7% as its first orbital Starship flight and growing AI ambitions put the focus on the company’s long-term growth potential.
Meanwhile, U.S. long-dated Treasury yields also spiked on Monday. At the time of writing, the 10-year U.S. Treasury yield was trading at 5.313%, and the 30-year Treasury bond yield was trading at 5.67%.
Morgan Stanley Wealth Management investment chief Lisa Shalett reportedly wrote in a note that bonds have faced heightened volatility over the past six weeks, according to a CNBC report.
Shalett cited the potential for a new Federal Reserve policy framework, economic growth, and elevated oil prices amid the ongoing Middle East conflict as a reason for the volatility. She said that while intraday implied volatility has increased, the recent moves have yet to reach the extreme levels that preceded the 2022 equity bear market.
Last week, “Bond King” Bill Gross noted in a Financial Times op-ed that markets must be prepared for the end of “what you are used to” in stock markets and higher volatility in prices for the benchmark 10-year Treasury bonds.
As stocks rise to record levels and yields climb simultaneously, “my view is: don’t own bonds, with the exception of one-year Treasury bills, which are now at 4.55 percent,” he said.
Meanwhile, oil prices have pulled back in recent days, although Brent crude continues to trade over $100 a barrel. At the time of writing, Brent crude futures expiring in December were trading at $100.66 a barrel, while WTI crude futures expiring in November traded at $89.61 per barrel.
On the economic front, markets will watch the U.S. Federal Open Market Committee (FOMC) meeting minutes, scheduled for release on Wednesday.
Trending Stocks To Watch
SpaceX (SPCX): Elon Musk’s rocket company was on the retail radar after shares jumped more than 7% at close amid reports that the company is eyeing a natural gas pipeline in Florida to fuel Starship launches, while its long-term AI ambitions also added to optimism.
USA Rare Earth Inc. (USAR): The rare earth company garnered retail attention as the stock climbed in the overnight session amid its supply-chain ambitions and recent appointment of Thras Moraitis as its Chief Executive Officer.
Constellation Energy Corp. (CEG): The nuclear power company rose more than 3% overnight on Monday after a report suggested that it is close to a multi-year power deal with Google parent Alphabet valued at about $1 billion.
Novavax Inc. (NVAX): Shares of the biotechnology company soared about 20% at close on Monday, gaining in sympathy to rival Sanofi’s rollout of the Nuvaxovid COVID-19 vaccine for the fall season and Vaxcyte’s announcement of positive trial results for its pneumonia vaccine.
Other Market Trends
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), the SPDR Dow Jones Industrial Average ETF Trust (DIA) and the Invesco QQQ Trust (QQQ) all climbed overnight, with ‘extremely bullish’ sentiment for all three.
The iShares 20+ Year Treasury Bond ETF (TLT) was down 0.07% amid ‘bullish’ sentiment.
Asian markets opened mixed on Tuesday. South Korea’s KOSPI was trading in the red at the time of writing. However, Japan’s Nikkei 225, China’s SSE Composite and Australian stocks were trading higher at the open.
For updates and corrections, email newsroom[at]stocktwits[dot]com.
Aashika Suresh has no position in any of the stocks mentioned in this article. StockTwits’ news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits.
Related: