S&P 500, Nasdaq Composite, and Russell 2000 Rebound In Broad Market Rally

Barry Adams
22 Jul, 2024
New York City

Stocks on Wall Street rebounded following sharp losses in the previous week and in Friday's trading after a product upgrade by Crowdstrike caused a severe meltdown of information systems around the world. 

The S&P 500 index and the Nasdaq Composite rebounded around 1% in Monday's trading after falling more than 2% and 4%, respectively, in the previous week amid rising trade tensions between the U.S. and China. 

Market indexes were on the upswing as traders kept their eye on the fast-developing political landscape after U.S. President Joe Biden dropped out of the presidential race and endorsed Vice President Kamala Harris's nomination for the Democratic Party. 

57-year-old Harris is the front-runner for the Democratic Party, and she is likely to prove a tougher challenge for the Republican Party candidate, 78-year-old Donald Trump. 

On the economic front, U.S. investors are looking ahead to the release of the second quarter GDP growth rate with an estimate of 2%, faster than the 1.4% rate in the first quarter.

The PCE price index, an alternative measure of inflation, is also expected to show a slight increase of 0.1% following a flat reading in May.

On the earnings front, Microsoft, Coca-Cola, Tesla, Visa, UPS, IBM, AT&T, and Exxon Mobil are scheduled to release quarterly results. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.8% to 5,547.83,  the Nasdaq Composite rose 1.1% to 17,922.48, and the Russell 200 advanced 0.4% to 2,192.39.

The yield on 2-year Treasury notes edged higher to 4.53%, 10-year Treasury notes increased to 4.23%, and 30-year Treasury bonds edged higher to 4.43%.

WTI crude oil decreased $0.75 to $77.88 a barrel, and natural gas prices edged up 9 cents to $2.22 a thermal unit.

Gold decreased by $2.63 to $2,397.82 an ounce, and silver was up 21 cents to $29.03. 

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 104.31.

 

U.S. Stock Movers 

Bank of America decreased 1.2% to $42.41 after Berkshire Hathaway said in a regulatory filing that it sold 33.9 million shares valued at $1.48 billion in the company. 

Nvidia Corp. advanced 3.9% to $122.22 after Reuters news reported that the company is preparing a Chinese version of the Blackwell chip for artificial intelligence that is compliant with U.S. export control. 

Crowdstrike Holdings decreased 10% to $274.13 after Guggenheim downgraded stock to "neutral' from "buy," adding that the company is likely to face near-term challenges after the company's product upgrade caused the global outage last weekend.