Nasdaq and S&P 500 Hit Record Highs as Nvidia and Intel Surge

The Nasdaq and S&P 500 reached record highs on Monday, driven by chip stocks like Nvidia and Intel. Investors await fresh inflation data, Fed Chair Jerome Powell’s testimony, and upcoming quarterly earnings season. Concerns persist over interest rates and economic recession risks, amidst mixed stock sector performances.

The Nasdaq and S&P 500 reached record highs on Monday as a surge in chip stocks, including Nvidia and Intel, lifted the markets. Nvidia saw a 2.5% increase, while Intel rallied almost 6%. Investors are now awaiting fresh inflation data, commentary from Federal Reserve Chair Jerome Powell, and the commencement of the quarterly earnings season.

The Nasdaq hit a record high, with the S&P 500 also moving modestly higher to achieve a new record. On Thursday and Friday, traders will be closely monitoring consumer and producer price data to evaluate the Federal Reserve's progress in combating inflation.

Amidst these developments, investors are concerned that a delayed interest rate cut could harm the labor market and possibly trigger a recession. Fed Chair Powell's testimony before U.S. Senate and House committees is set for Tuesday and Wednesday, with market participants hoping for a dovish tone regarding labor market risks. Expectations for interest rate cuts have grown following a weaker-than-anticipated nonfarm payrolls report for June which suggested slowing job growth.

As Wall Street's second-quarter earnings season kicks off on Friday with Citigroup, JPMorgan Chase, and Wells Fargo, analysts project a 10.1% year-over-year increase in S&P 500 companies' earnings per share, a rise from the first quarter's 8.2%. Citigroup shares rose by 1.1%, while Wells Fargo shares fell by 1.4% on Monday.

The S&P 500 ended the day up 0.06% to 5,570.68 points, while the Nasdaq gained 0.20% to 18,389.54 points. The Dow Jones Industrial Average closed down 0.08% at 39,345.56 points. Of the 11 S&P 500 sector indexes, information technology led with a 0.59% increase, whereas consumer services saw a near 1% decline.

Meta Platforms' 1.8% drop and a 3% fall in Paramount Global shares, following a merger with Skydance Media, weighed on the consumer sector. Boeing saw a 0.3% rise after agreeing to a plea deal over a fraud conspiracy charge related to 737 MAX crashes. The S&P 500 recorded 20 new highs and 7 new lows, while the Nasdaq saw 69 new highs and 90 new lows.

(With inputs from agencies.)