The major stock indexes closed Monday’s trading session mixed as Treasury yields declined and investors awaited a key Federal Reserve meeting. Despite the low-key trading, notable stocks like Tesla, McDonald’s, and ON Semiconductor performed well. However, Apple and Nvidia saw losses.
The Dow Jones Industrial Average underperformed compared to other major indexes, ending the day slightly lower. The Nasdaq composite began with a strong gain that faded towards the end of the day, while Dexcom experienced a significant bounce after last week’s sharp decline. Arm, on the other hand, struggled.
Revvity stood out as one of the top performers in the S&P 500, following a successful quarterly report. Meanwhile, Enphase Energy and First Solar did not fare as well. The consumer discretionary and communication services sectors were strong, but energy and technology lagged behind. Small caps faced challenges, with the Russell 2000 down by nearly 1%.
The decline in Treasury yields reflected investor anticipation over the outcome of the Federal Reserve meeting. The likelihood of a rate cut in September increased, with expectations for steady rates during this week’s meeting and a potential cut in the following month. Federal Reserve Chair Jerome Powell’s post-meeting conference could shape trader expectations.
ON Semiconductor emerged as the top performer on the S&P 500 after its quarterly report beat expectations. The company’s stock surged following the results, showing resilience despite the overall lackluster performance with a Composite Rating of 40.
Amid the diverse performances of various industry groups, some excelled while others struggled in Monday’s trading session. The fate of Abbott Laboratories, taking a hit following a verdict on its Similac formula for premature infants, indicated potential challenges in the healthcare sector. McDonald’s shares rose despite disappointing earnings, reflecting its efforts to attract more consumers with value meals.
Overall, the performance of key stocks like Tesla and Nvidia intrigued investors following bullish reports. While some stocks like Victory Capital showed promising signs with a potential buy point, others faced challenges. The market landscape remains dynamic, with a range of factors influencing trading activities.
