The stock market showed modest gains on Monday morning, with the Dow Jones Industrial Average leading the way with a 0.5% gain. Chip stocks saw a surge in the wake of price-target hikes on Taiwan Semiconductor Manufacturing (TSM) and Nvidia (NVDA).
While the S&P 500 and Nasdaq both edged up 0.1%, the Russell 2000 saw a rally of 1%. Volume was higher on the Nasdaq but lower on the NYSE compared to Friday. Market breadth was positive, with advancers outnumbering decliners on both exchanges.
In bonds, the 10-year Treasury yield ticked up to 4.28%, and crude oil prices dipped near $82.60 a barrel. Fed Chair Jerome Powell is set to testify before Congress later in the week, and investors will be closely watching for any hints regarding future interest rate cuts.
Upcoming economic data includes the Consumer Price Index and Producer Price Index reports, providing insights into inflation trends. Meanwhile, chip stocks like Taiwan Semiconductor and Nvidia saw gains following positive price target revisions, while Intel and Boeing also posted strong performances.
Elsewhere, biotech stock Morphic Holdings surged on news of a buyout by Eli Lilly, and SolarEdge Technologies received an upgrade from BofA Securities. Earnings season kicks off this week, with companies like Delta Air Lines and major banks reporting. Investors are closely monitoring these developments for potential investment opportunities.
