S&P 500 and Nasdaq Trade at New Intraday Record Highs, Artificial Intelligence Stocks In Focus

Barry Adams
20 May, 2024
New York City

Benchmark indexes on Wall Street lacked direction in Monday's trading, following an advance in the previous four weeks in a row. 

Investors continued to bid up artificial intelligence-linked stocks ahead of Nvidia's earnings later in the week after several analysts upgraded the stocks and raised the price target, suggesting as much as 30% upside. 

In the week ahead, investors in the U.S. are looking forward to the release of the minutes of the latest policy meeting on Wednesday and updates on durable goods orders and the consumer sentiment index.

On the earnings front, investors are looking ahead to the release of earnings from Nvidia, Palo Alto Networks, Lowe’s, Analog Devices, Synopsis, Ralph Lauren, AutoZone, Target, and TJX.

 

U.S. Indexes and Treasury Yields

The S&P 500 index and the Nasdaq Composite inched further into record territory, driven by rate-cut expectations, corporate quarterly results meeting lowered expectations, and positive sentiment surrounding artificial intelligence technology development and application. 

The S&P 500 index increased 0.3% to 5,320.39, and the Nasdaq Composite advanced 0.6% to 16,793.58. 

The yield on 2-year Treasury notes edged higher to 4.84%, 10-year Treasury notes increased to 4.44%, and 30-year Treasury bonds edged higher to 4.58%.

Natural gas prices advanced for the fourth session in a row and reached this year's high on the expectation of rising demand from U.S. electric utilities. 

WTI crude oil increased $0.12 to $80.81 a barrel, and natural gas prices increased 2 cents to $2.70 a thermal unit.

Gold increased by $6.11 to $2,420.49 an ounce, and silver rose 9 cents to $31.59. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.54.

 

U.S. Stock Movers

Nvidia soared 2.2% to $947.55 after the maker of ships for artificial intelligence activities was upgraded by several analysts ahead of the company's earnings release on Wednesday. 

Johnson Controls International PLC jumped 2.5% to $70.78 after Bloomberg News reported that activist investment strategy-focused Elliott Investment Management has acquired a stake in the company worth more than $1 billion. 

Palo Alto Networks declined 0.2% to $316.85 ahead of the company's quarterly results after the market closed later on Monday.