Traders work on the floor of the New York Stock Exchange during morning trading on December 13, 2023 in New York City.
Michael M. Santiago | Getty Images
The S&P 500 and Nasdaq Composite rose Monday, boosted by tech shares, as Wall Street tried to recover from a tough week. The Dow Jones Industrial Average was under pressure, however, as Boeing declined.
The broad market index gained 0.5%, while the Dow lost 85 points, or 0.2%. The Nasdaq outperformed, rising 1.1%.
Investors are also buying the dip with the technology sector, the worst performing among S&P 500 groups so far in the new year, as yields fell on Monday. Nvidia rose more than 4%, reaching an all-time high, and Amazon rose more than 1% to also lead the Nasdaq higher. Apple also ticked more than 1% higher after Evercore ISI advised clients buy last week’s dip.
The yield on the 10-year Treasury yield, meanwhile, lost nearly 4 basis points.
Boeing, weighing on the Dow, fell more than 6% following the temporary grounding of dozens of Boeing 737 Max 9 aircrafts for inspections, after a section of an Alaska Airlines flight blew out.
“I think it’s still a new year, the same bull market with the same risk,” Adam Turnquist, chief technical strategist at LPL Financial, said. Last week’s losses coupled with Monday’s moves on the 10-year yield have given investors “enough confidence to step back into tech,” he said.
“The simple story is stocks were overbought and yields were oversold, and now we had an excuse for a little bit of a bounce in both directions…it’s nothing really too concerning at this point,” Turnquist added.
Wall Street is coming off its first losing week in 10 as mega-cap tech stocks such as Apple underperformed, and Treasury yields rose. The Dow Jones Industrial Average dropped 1.5% for the week, and the S&P 500 slid 0.6%. The tech-heavy Nasdaq Composite posted its worst weekly performance since September, falling 3.25%.
This week, traders will get greater clarity into the path of rate cuts from the central bank. The December consumer price index is set for release Thursday, while the producer price index is due out on Friday, will show whether the Fed’s efforts to bring inflation down to its 2% are taking hold.