The Nasdaq 100 rallied 1.2% on Monday as chipmakers rebounded and investors piled back into AI hardware.
The S&P 500 rose 0.8% to 7,681, up 58 points. The Dow Jones Industrial Average added 134 points, or 0.3%, to 52,349.
Within the Magnificent Seven, Nvidia Corp. (NASDAQ:NVDA) rose 2.2%, and Microsoft Corp. (NASDAQ:MSFT) gained 1%, while Apple Inc. (NASDAQ:AAPL) fell 1.1%. Tesla Inc. (NASDAQ:TSLA) jumped 6% after Barclays upgraded the stock to Overweight from Equal Weight and lifted its price target to $450.
The Nasdaq 100 climbed 1.2% to 29,306. The Russell 2000 rose 0.7%, and the VIX fell 5.9% to 18.31.
While Wall Street attempted a rebound, Brazil plunged in one of its worst trading days.
The iShares MSCI Brazil ETF (NYSE:EWZ) fell 21.7% by midday, on pace for its worst session since March 16, 2020, and a steeper drop than any day of the 2008 financial crisis.
President Luiz Inácio Lula da Silva defeated Sen. Flávio Bolsonaro in Sunday’s runoff, overturning bets on a business-friendly, fiscally tighter government built after Bolsonaro’s first-round lead.
Brazil-focused brokerage XP Inc. (NASDAQ:XP) lost 48.4%, more than double its previous worst day since its December 2019 listing, a 23.8% drop in March 2020. Digital bank Nu Holdings Ltd. (NYSE:NU) sank 19.5%. Both were among the worst-performing Russell 1000 names on Monday.
The Brazilian currency lost more than 10%, heading for its worst day since 1999.
In the bond market, Treasuries firmed at the long end ahead of the Federal Reserve’s decision on Wednesday.
The 10-year yield fell 2 basis points to 4.98%, holding below the 5% mark it broke last week. The 30-year yield dropped 3.5 basis points to 5.29%, while the 2-year yield edged up 2 basis points to 4.71%.
Oil eased. West Texas Intermediate crude slipped 0.5% to $102.72 a barrel as Saudi, Pakistani and Turkish security officials prepared to meet Iranian leaders to revive negotiations and Hormuz tanker traffic recovered toward prewar levels. Brent’s January contract, now the most active, was little changed at $111.84.
Gold rose 0.7% to $4,034 an ounce, and silver gained 0.6% to $54.25. Bitcoin (CRYPTO: BTC) was flat near $80,064.
Monday’s Performance In Major US Indices
| Index | Last | % Change | MTD | YTD |
|---|---|---|---|---|
| S&P 500 | 7,681.39 | +0.76% | +0.39% | +12.21% |
| Dow Jones | 52,348.86 | +0.26% | +2.83% | +8.92% |
| Nasdaq 100 | 29,305.92 | +1.20% | -3.63% | +16.06% |
| Russell 2000 | 2,795.83 | +0.72% | -0.04% | +12.65% |
According to the Benzinga Pro platform:
- The Vanguard S&P 500 ETF (NYSE:VOO) gained 0.7%.
- The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) edged up 0.3%.
- The Invesco QQQ Trust (NASDAQ:QQQ) rose 1.2%.
- The iShares Russell 2000 ETF (NYSE:IWM) advanced 0.8%.
AI Hardware Leads, A $50 Billion Gas Deal Lifts Range
Technology led the S&P 500’s sectors. The Technology Select Sector SPDR Fund (NYSE:XLK) rose 1.6%, powered by chipmakers and optical-networking names.
Communication services lagged. The Communication Services Select Sector SPDR Fund (NYSE:XLC) fell 1.2%, weighed by Netflix Inc. (NASDAQ:NFLX), down 3.7%, and small losses in Alphabet and Meta.
Industrials and consumer discretionary also gained more than 1%, while consumer staples and health care slipped.
Range Resources Corp. (NYSE:RRC) surged 15.3% after agreeing to an all-stock merger with EQT Corp. (NYSE:EQT) valued at about $50 billion, creating the largest U.S. natural gas producer. Range holders will receive 0.987 EQT shares for each share and own about 27% of the combined company. EQT fell 3.6%.
Lumentum Holdings Inc. (NASDAQ:LITE) climbed 8.4% after StoneX initiated coverage at Buy with a $1,200 target. Peer Coherent Corp. (NYSE:COHR), also started at Buy, rose 5.5%.
Other AI-infrastructure names rallied with the group.
TTM Technologies Inc. (NASDAQ:TTMI) rose 9.2%, extending gains after third-quarter sales jumped 60% to $1.2 billion last week. Power-components maker Vicor Corp. (NASDAQ:VICR) gained 9.2% and cloud provider DigitalOcean Holdings Inc. (NYSE:DOCN) added 8.7%.
Fair Isaac Corp. (NYSE:FICO) tumbled 11.1% after it said it would hold its mortgage score price at $10 for lenders in its Preferred Program, keeping pricing flat from a year earlier. Wells Fargo cut its target to $735 from $800.
Circle Internet Group Inc. (NYSE:CRCL) slid 6.6% after Mizuho reiterated Underperform and cut its target to $43 from $45, warning that AI assistants could steer users away from the USDC stablecoin.
Whirlpool Corp. (NYSE:WHR) dropped 6.1% ahead of its third-quarter results after the close.
Looking Ahead
After the bell, Whirlpool is expected to report earnings of 73 cents per share.
Cadence Design Systems Inc. (NASDAQ:CDNS) is seen at $2.05, Amkor Technology Inc. (NASDAQ:AMKR) at 78 cents, Brown & Brown Inc. (NYSE:BRO) at $1.09 and Welltower Inc. (NYSE:WELL) at 64 cents.
Monday’s Russell 1000 Top Gainers
| Name | % change |
|---|---|
| Range Resources Corp. | +15.31% |
| TTM Technologies Inc. | +9.22% |
| Vicor Corp. | +9.17% |
| DigitalOcean Holdings Inc. | +8.73% |
| Lumentum Holdings Inc. | +8.39% |
Monday’s Russell 1000 Top Losers
| Name | % change |
|---|---|
| XP Inc. | -48.44% |
| Nu Holdings Ltd. | -19.46% |
| Fair Isaac Corp. | -11.06% |
| Circle Internet Group Inc. | -6.59% |
| Whirlpool Corp. | -6.05% |
Photo: Shutterstock
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