Global market news: US stock market logs biggest percentage gain since May 27; Tesla, NVIDIA, Microsoft shares rise

Global market news: On Monday, all three key benchmark indices of the US stock market — Dow Jones, S&P 500, and NASDAQ — registered their biggest daily percentage increases since May 27, as investors sought bargains after the previous session’s selloff and ramped up bets for a September interest rate cut after Friday’s weaker-than-expected jobs data. 

The Dow Jones Industrial Average rallied 585.06 points, or 1.34%, to 44,173.64, while the S&P 500 gained 91.93 points, or 1.47%, at 6,329.94. The Nasdaq Composite closed 403.45 points, or 1.95%, higher at 21,053.58.

Among US majors, Tesla share price rose 2.2%, Nvidia stock price surged 3.62%, Microsoft shares rallied 2.20% and Advanced Micro Devices stock gained 2.99%. Joby Aviation shares jumped 18.8 and Blade Air stock price spiked 17.2%. Berkshire Hathaway shares fell 2.7%. However, Berkshire Hathaway share price fell 2.7% as investors took in a $3.8 billion write-down and a dip in quarterly operating profit that the firm disclosed on Saturday.

Advancing issues outnumbered decliners by a 4.48-to-1 ratio on the NYSE. There were 136 new highs and 51 new lows on the NYSE.

What’s fueling US stock market?

“Today is just a little bit of dip-buying. It does show a pretty healthy sign of folks out there looking for an opportunity to get in,” said Mike Dickson, head of research and quantitative strategies at Horizon Investments in Charlotte, North Carolina.

“It’s a little concerning in the sense the labor market … definitely appears to be weaker than people expected. A bit of an offset to that is the renewed rate cut expectations. There’s a high probability we’re getting a September cut.”

On the Nasdaq, 3,487 stocks rose and 1,090 fell as advancers outnumbered decliners by a 3.2-to-1 ratio.

Volume on U.S. exchanges was 15.05 billion shares, compared with the 18.37 billion average for the full session over the last 20 trading days.

(With inputs from Reuters)

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