Wall Street Today: DJIA Hits Record Close, Nasdaq Comp Adds 2% as TSLA, AMZN and GOOGL Rally
The Dow industrials set a new all-time closing high Monday and the tech-heavy Nasdaq Composite rose 2% as Tesla, Amazon, Alphabet and other "Magnificent Seven" stocks gained ground.
The $Dow Jones Industrial Average (.DJI.US)$ rose 0.6% to a 52,182.74 ending, surpassing its previous closing high set on June 16.
Meanwhile, the $Nasdaq Composite Index (.IXIC.US)$ added 2.1% to 25,820.14, while the $S&P 500 Index (.SPX.US)$ gained 86.41 ticks (1.2%) to 7,440.43.
The Nasdaq Comp rose 2.1% to a 25,825.745 session high, while the S&P 500 added 1.2% to a 7,440.64 intraday peak.
Macro
The key indexes rose in part on significant gains for Mag-7 names $Tesla (TSLA.US)$(up 8.5%), $Alphabet-A (GOOGL.US)$ (4.8% better) and $Amazon (AMZN.US)$ (3.2% firmer).
All three are S&P 500 and Nasdaq Composite members, while Alphabet and Amazon belong to the DJIA as well. They've also all been rebounding since hitting their lowest levels in some two months last Thursday.
Tesla bounced in part ahead of Q2 delivery figures due out Thursday, coupled with CEO Elon Musk tweeting about a new version of the electric-vehicle maker's Full Serve Driving assist software coming to vehicles that use AI3 hardware.
As for Amazon, the e-commerce giant rose in apparent sympathy with the other two Mag-7 names.
Adding to Monday's positive tone, select AI-buildout stocks rang up fresh gains as well.
Winners included $Cerebras Systems (CBRS.US)$ (19% better), $Corning (GLW.US)$ (up 15.7%), $Western Digital (WDC.US)$ (which added 11.2%), $Applied Materials (AMAT.US)$ (10.8% firmer) and$Applied Optoelectronics (AAOI.US)$ (10.6% better).
Western Digital and Applied Materials are S&P 500 and Nasdaq Composite components, as is Corning – which hit a new all-time intraday high earlier in Monday's session.
Other tech stocks to rise by lesser amounts included $NEBIUS (NBIS.US)$ (8.7% firmer), $Marvell Technology (MRVL.US)$ (4.1% better), $Advanced Micro Devices (AMD.US)$ (3.4% firmer), $Palantir (PLTR.US)$ (2.5% better), $Intel (INTC.US)$(2.7% stronger) and $Micron Technology (MU.US)$ (which added 1.1%).
Elsewhere in markets, cryptocurrencies rose in a "risk-on" move that mirrored tech stocks' gains.
$Bitcoin (BTC.CC)$ gained 1.7% to $60,376.13 as of shortly before 4:45 p.m. New York time, while $Ethereum (ETH.CC)$ rose 3.8% to $1,622.65, $Solana (SOL.CC)$ improved by 6.9% to $75.56 and $Ripple (XRP.CC)$ 2.3% to $1.07.
Moo-vers
The "Magnificent Seven" stocks mostly followed the broad market's lead and rose Monday.
$Tesla (TSLA.US)$, $Alphabet-A (GOOGL.US)$ and $Amazon (AMZN.US)$ led the Mag-7 winners list, rising by their aforementioned 8.5%, 4.8% and 3.2%, respectively.
Other Mag-7 gainers included $Meta Platforms (META.US)$ (up 2.2%) and $NVIDIA (NVDA.US)$ (1.3% higher).
Beyond the Mag-7, other stocks to see noteworthy declines included:
-- $Super Micro Computer (SMCI.US)$, which fell 8.1%. The tech giant fell after Bloomberg News reported that Taiwanese authorities raided its local office in a probe over allegedly shipping advanced chips made by $NVIDIA (NVDA.US)$ to China in violation of U.S. export controls.
-- Select tech stocks that didn't participate in Monday's rally. Decliners included $IREN Ltd (IREN.US)$ (off 2.8%), $SanDisk (SNDK.US)$ (down 1.9%) and $CoreWeave (CRWV.US)$ (1.1% lower).
Conversely, Monday's significant percentage winners included:
-- Certain space stocks, which rose after Bloomberg reported that $SpaceX (SPCX.US)$ is in talks with U.S. cable giant $Charter Communications (CHTR.US)$ about a potential mobile-telecom partnership. SpaceX gained 7.2% on the news. Meanwhile, $AST SpaceMobile (ASTS.US)$ rose 21.4% in apparent sympathy, plus word Sunday from the company that its recently launched BlueBird 8, 9 and 10 satellites "are in orbit and operational." Separately, $Rocket Lab (RKLB.US)$ rallied 15.9% on plans to buy $Iridium Communications (IRDM.US)$ for $8 billion in cash and stock. (IRDM added 25.44%.)
-- Select fuel-cell firms. $FuelCell Energy (FCEL.US)$ led the way higher, rising 24.2% after winning a $49 million financing package from the U.S. Export-Import Bank. $Bloom Energy (BE.US)$ gained 9.1% partly in sympathy, as well as on reports that it will soon join two indexes: the Russell 1000 and the Russell 200 Megacap.
-- $Strategy (MSTR.US)$, which gained 12.6%. The Bitcoin-treasury firm rose after management adopted a new "Digital Credit Capital Framework" that will let it buy back more than $1 billion of preferred and common stock. The new policy will also allow MSTR – which bought lots of Bitcoin, but rarely sold any in recent years – to sell some cryptocurrency from time to time.
-- $BlackBerry (BB.US)$, which rose 9.5% to $12.48. The Canadian software-and-services firm rose to five-year highs after RBC Capital Markets boosted its price target to $9 from $4.50 while maintaining the stock as "Sector Perform."
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors' financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal.
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