- Dow up 0.52%, S&P 500 up 0.40%, Nasdaq up 0.19%
- Chevron In positive form on initial 2 results
- US businesses' activity during July dips as does slowing of services
- Dow is the winner with the longest streak since February 2017
Market Soars: Dow Up, S&P 500 Up, Nasdaq Up!
The Dow Jones Industrial Average (.DJI) has soared to new heights Monday, which marked the longest streak of winning in more than six years. The attention of investors is shifting to other sectors than technology because the coming week will be packed with earnings announcements and the Federal Reserve's meeting scheduled for next week.
Embracing Diversity in the Market
"What are you seeing right now is the broadening of the market" explained Randy Frederick, managing director of derivatives and trading at the Schwab Center for Financial Research. The investors tend to diversify their portfolios, and looking for opportunities outside of technology, looking to find better deals across the board.
Tech Giants Under Scrutiny
The market is eagerly waiting for the reports on earnings from the tech bigwigs Microsoft (MSFT.O) and Google's owner Alphabet (GOOGL.O) and Meta Platforms (META.O). They will decide if their valuations for stocks are based on the astronomical expectations set for these firms.
Nasdaq's Impressive Rally
The tech-driven Nasdaq Composite Index (.IXIC) has displayed a stunning growth this year, increasing to 34.3 percentage. Companies with huge growth potential, specifically those that are prone to fluctuations in the rise in interest rates, are gaining in response to the optimism surrounding artificial intelligence, as well as the possible ending of the Federal Reserve's tightening process.
Non-Tech Stocks Take the Spotlight
As the Nasdaq is leading the pack through the entire year, investors are seeking bargains in the non-tech sector. Bank and energy stocks have seen a boost because investors are looking for alternative options.
Chevron Gains on Upbeat Earnings
In addition to the Dow's remarkable streak of gains, Chevron (CVX.N) witnessed gains of more than 2.2% following its positive first-quarter earnings on the weekend. This impressive performance by the energy company has increased the confidence of investors.
Economic Activity Slows in July
Despite fears of a slowdown in economic growth the market seems to be presenting optimism. The survey found that in July, U.S. business activity hit an all-time low of five months, mostly caused by a decline of the service industry. There is however an increasing belief that there is an eventual soft landing as well as it is possible to see a more moderate stance by the Federal Reserve.
The Fed's Monetary Policy
It is expected that the Federal Reserve is expected to increase rates to 25 basis points in the next policy-making session on Wednesday. The majority of economists surveyed by Reuters think this is the final hike within the current tightening cycle particularly after the recent reports showing signs of a slowing in inflation.
The Dow Jones Industrial Average (.DJI) finished the session with an rise of 183.55 points which is 0.52 percent, to 35,411.24. The S&P 500 (.SPX) increased 18.3 points in the range of 0.40 percent in the range of 4,554.64 The Nasdaq Composite (.IXIC) increased by 26.06 points equivalent to 0.19 percent, to 14,058.87.
The sector of energy (.SPNY) has seen significant growth and led nine of the eleven important S&P 500 sectors to move into positive space.
Rise of Mattel and AMC Entertainment
Toymaker Mattel (MAT.O) witnessed a gain of 1.8 percentage due to the fact that the "Barbie" film achieved an unprecedented domestic opening in 2023. In the meantime, AMC Entertainment (AMC.N) saw a dramatic increase of 32.9 percentage following a court ruling that blocked the chain's stock-conversion strategy, thereby protecting shareholders' stakes of the firm.
Chinese Companies' Stock Surge
U.S.-listed stocks of Chinese businesses such as Alibaba and JD.com saw significant increases in the range of 4.5 percent and 3.5 percentages, and 3.5% respectively. The surge occurred after the top executives of these companies have announced changes to their economic policies to boost domestic demand.
To combat "over-concentration" of the Nasdaq 100 benchmark exchange, Nasdaq (NDAQ.O) decreased the share of various companies which comprised nearly fifty percent of Nasdaq 100.
The number of advancing issues was higher than decliners on the NYSE in an amount of 1.61-to-1 and on Nasdaq it was favored by decliners by 1.09-to-1. The S&P 500 recorded 22 new 52-week records and a brand new low. The Nasdaq Composite recorded 58 new highs and 97 lows.
Through diversifying their investment portfolios and taking advantage of opportunities outside the technology sector Investors are creating an enduring market. With the Federal Reserve meeting approaches, everyone's eyes are focused at the direction that will be taken by the policy of monetary and exchange rates, as well as its possible influence on market performance.