U.S. stock markets displayed a mixed performance on Monday afternoon as they attempted to recover from a significant downturn experienced last week. The Dow Jones Industrial Average saw an increase of 0.5%, while the S&P 500 rose by 0.1%. In contrast, the tech-heavy Nasdaq Composite fell by 0.4%. This fluctuation followed two consecutive days of hefty losses, pushing the major indexes into negative territory for February, with the Dow experiencing its worst weekly performance since October.
Nvidia, the AI chipmaker gearing up to report its quarterly results on Wednesday, saw its stock drop by 1% after a notable decline of over 4% last Friday. Conversely, Apple experienced a 1% rise, fueled by its announcement of an investment exceeding $500 billion in the U.S. over the next four years. Other significant tech stocks experienced various declines; Meta Platforms and Broadcom both fell more than 2%, while Microsoft, Amazon, and Tesla each registered losses of about 1%. Alphabet emerged as a bright spot, gaining ground.
In the broader tech sector, Palantir led the S&P 500 decliners with a notable drop of 10%, following its fall last week. Meanwhile, Super Micro Computer experienced a decline of 5%. On a positive note, Nike surged 5%, becoming a leader among S&P gainers after an upgrade from Jefferies, while Berkshire Hathaway also rose by 5% after reporting a substantial 70% increase in fourth-quarter operating earnings over the weekend.
As the week progresses, the earnings calendar is expected to heat up significantly, with major companies like Home Depot, Lowe’s, Salesforce, and Dell Technologies set to release quarterly reports. Notably, Dell shares were observed to dip by more than 2% in afternoon trading.
On the fixed-income side, the yield on the 10-year Treasury, which reflects interest rate outlooks, stood at 4.41%, slightly down from 4.42% at the end of last week and close to this month’s lowest point. The decline in yields followed disappointing data on home sales and consumer confidence reported last Friday, leading investors to watch closely for additional economic indicators this week, particularly one related to inflation due out on Friday, which may influence the Federal Reserve’s interest rate decisions.
Gold futures rose by 0.3%, trading near record highs at around $2,965 per ounce, while West Texas Intermediate crude oil futures also saw a modest increase of 0.3%, reaching $70.65 per barrel. Bitcoin traded at $94,200, slightly lower from an earlier peak of $96,500, as it continues to fluctuate within a narrow range in recent weeks.
Despite the mixed market conditions, there is a sense of cautious optimism as investors brace for upcoming earnings reports and economic data that could influence market trends.