Wall Street Today: Nasdaq, S&P 500 and DJIA All Rise as PLTR, NVDA, TSLA and Other Tech Darlings Rebound
The Nasdaq Composite rose 2%+ Monday and the S&P 500 and Dow-30 gained ground as well as Palantir, Nvidia, Alphabet, Tesla and other tech darlings recovered much of the losses they suffered last week.
The tech-heavy $Nasdaq Composite Index (.IXIC.US)$ gained 522.64 points (2.3%) to a 23,537.17 close, while the $S&P 500 Index (.SPX.US)$ added 103.63 ticks (1.6%) to 6,832.43. Similarly, the $Dow Jones Industrial Average (.DJI.US)$ rose 381.53 points (0.8%) to 47,368.63.
Macro
The three indexes rallied as multiple Big Tech stocks that fell last week partly rebounded in part as a risk-on mood hit Wall Street on word that the 41-day U.S. government shutdown could soon end.
Eight Democratic U.S. senators joined all 53 Republicans in passing a procedural vote Sunday night on a budget measure that required 60 votes for adoption.
Democrats had previously blocked the measure over a dispute with U.S. President Donald Trump and his Republican colleagues over whether to continue COVID-era subsidies for Americans who buy health insurance through the so-called "Obamacare" system.
Plans currently call for the subsidies to expire at year's end, but Democrats relented for now on trying to force Republicans to preserve them.
However, they did get Republicans to agree on a future vote to extend the subsidies. The GOP also promised to reverse Trump's attempts to permanently fire some government workers, as well as his efforts to only partly pay out November food-assistance benefits to poor Americans.
Although lawmakers must still pass some additional procedural votes to finalize the deal, many expect the U.S. government to reopen within days.
The progress cleared up uncertainty that's been hanging over Wall Street, opening the door for several tech stocks to rebound.
Many Big Tech names had lost ground last week after Palantir and $Uber Technologies (UBER.US)$ fell despite reporting better-than-expected quarterly earnings and forward guidance. That had some of Wall Street wondering if Big Techs had finally become too expensive for investors.
But Monday, several Big Techs saw big gains. Winners included $Palantir (PLTR.US)$ (up 8.8%), $NVIDIA (NVDA.US)$ (5.8% better), $Micron Technology (MU.US)$ (6.5% stronger), $Advanced Micro Devices (AMD.US)$ (which added 4.5%), $Alphabet-A (GOOGL.US)$ (ahead by 4%) and $Tesla (TSLA.US)$ (3.7% higher).
Adding to the market's positive tone, Federal Reserve Gov. Stephan Miran – one of the most dovish members of the U.S. central bank – reiterated his calls for the Fed to cut its benchmark rate by 50 points at its December meeting.
"Failing new information ... I would think that [a 50-point cut] is appropriate, as I have in the past – but at a minimum 25," Miran said during an appearance on CNBC TV.
Moo-vers
All of the "Magnificent Seven" stocks rose Monday as the tech sector rebounded.
$NVIDIA (NVDA.US)$, $Alphabet-A (GOOGL.US)$ and $Tesla (TSLA.US)$ led the way higher with their previously mentioned gains of 5.8%, 4% and 3.7%, respectively.
The rest of the Mag-7 rose by lesser percentage amounts. $Microsoft (MSFT.US)$ added 1.9%, while $Amazon (AMZN.US)$ rose 1.63%, $Meta Platforms (META.US)$ gained 1.62% and $Apple (AAPL.US)$ added 0.5%.
Elsewhere on Wall Street, Monday's other significant percentage gainers included:
-- $Navitas Semiconductor (NVTS.US)$, 22.5% higher. The semiconductor firm partly rebounded after falling nearly 60% between its Oct. 20 high and last Friday's low on several negative developments. For instance, the company last week released poorly received quarterly earnings, while also announcing a $100 million private stock placement that will presumably dilute existing shareholders.
-- $Opendoor Technologies (OPEN.US)$, up 21.5%. The home-buying platform and meme stock rose on multiple positive catalysts, including Goldman Sachs saying in a securities filing that it had taken a 5.1% stake in the firm. JP Morgan also gave OPEN a Street-high $8 price target, although the stock traded higher than that during Monday's session.
-- $XPeng (XPEV.US)$, up 16.2%. The Chinese electric-vehicle firm has been trading volatilely since announcing plans last week to roll out self-driving "robo-taxis" in China via the Amap mapping platform owned by $Alibaba (BABA.US)$.
Conversely, Monday's noteworthy percentage decliners included:
-- $Oscar Health (OSCR.US)$, down 17.6%. The online health-insurance platform apparently fell on a call by Trump to take money used to subsidize policies bought by Americans through the Obamacare system and send it directly to citizens to use in shopping for coverage.
-- $IonQ Inc (IONQ.US)$, off 6.6%. The volatile quantum-computing stock pulled back on Monday after rising 11% over the previous four sessions.
-- $NuScale Power (SMR.US)$, 6.3% lower. The next-generation nuclear-power stock has fallen for six straight sessions, losing 36.6% since its Oct. 31 close as investors continue to view nuke stocks as speculative. However, SMR is still up some 59% year to date.
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.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Jerry Kronenberg
Director of Financial Content
Former top editor at Seeking Alpha, Fidelity.com, TheStreet.com and UPI.
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FBP65 : I’m all in
憨批憨憨 FBP65 : how many share u holding
affable Blobfish_403 : When the U.S. government shut down, the U.S. stock market rose by 10%; when the government was about to reopen, the stock market surged again. What is the logic behind this?
DoRaeMi : Navitas pump of 7 dollars to current price is crazy. Close to 30% gain in 2 days if dipped is bought.
戆鸠鸠等丰收 affable Blobfish_403 : According to a TikTok finance influencer, the U.S. government shutdown has left many civil servants without paychecks, and the payroll account has accumulated up to $1 trillion. Consequently, this has reduced liquidity in the market. Once operations resume, funds are expected to flow back into the investment markets, which could drive stock prices higher. While it sounds reasonable, I believe the rise or fall is more likely caused by certain mysterious large capital forces.
Slay2dudes : ok