(New York) The New York Stock Exchange closed higher on Monday, benefiting from the good momentum of the previous week despite a session lacking in significant news.
The Dow Jones gained 0.58%, the NASDAQ index gained 1.59% and the broader S&P 500 index gained 0.97%.
The NASDAQ and S&P 500 posted their eighth straight gains on Monday, their best run this year.
“Today’s session is a continuation of the positive trend” that began last week, commented Art Hogan of B. Riley Wealth Management.
The New York market has had no leading indicators to get its teeth into and will have little more in the coming days.
On the business front, it will be entitled to a few publications from the distribution sector, mainly the DIY chain Lowe’s (Tuesday), the supermarket chain Target (Wednesday) or the low-cost ready-to-wear specialist TJX (also Wednesday).
Investors are also awaiting a speech by the chairman of the American central bank (Fed), Jerome Powell, on Friday at 10 a.m. (Eastern time), as part of the Jackson Hole (Wyoming) symposium, which brings together many central bankers from around the world.
“Powell often doesn’t say much” that’s new in Jackson Hole, warns Art Hogan, who says nothing on the weekly menu “should be a catalyst” for the indices in one direction or the other.
The analyst nevertheless points out that volumes are low, with many traders still on holiday. The value of trades recorded on Monday was the lowest since the end of November.
In this context, “it doesn’t take much” to change the market mood.
On Monday, Wall Street was also encouraged by a new easing of bond rates. The yield on 10-year US government bonds was 3.87%, compared to 3.89% at the close on Friday.
On the stock market, semiconductor designer AMD (+4.52%) took part of the sector with it with the announcement of the acquisition of computer server and data center specialist ZT Systems, for 4.9 billion dollars.
AMD intends to offer a more comprehensive offering in the field of artificial intelligence (AI).
Its competitors Nvidia (+4.35%) and Intel (+3.11%) also paraded.
Other AI stocks, such as Alphabet (+2.22%) and data analytics company Palantir (+1.31%), also stood out.
McDonald’s (+3.25%) benefited from a price target increase by analysts at investment bank Evercore ISI. They believe the restaurant giant is capable of continuing to gain market share in the United States thanks to a low pricing policy.
GM rose 0.97% after CNBC reported more than 1,000 job cuts in its services and software businesses. The automaker confirmed layoffs in these areas when contacted by AFP, but did not provide a figure.
Estée Lauder fell (-2.23%) despite results that exceeded expectations. Investors paid more attention to the cosmetics group’s forecasts, which were considered disappointing, as well as to the announcement of the retirement of CEO Fabrizio Freda, who has been at the helm for fifteen years.
The manager will leave the New York group at the end of the 2025 financial year, i.e. the end of June 2025.
US Steel (-5.96%) also finished well into the red as Republican presidential candidate Donald Trump was expected to pledge on Monday to block the acquisition of the steelmaker by rival Nippon Steele, according to the written version of a speech he is due to deliver at a public meeting in Pennsylvania.
Streaming platform FuboTV soared (+17.65%) after a New York federal judge ruled Friday to block the creation of a sports-focused video-on-demand platform by Disney, Fox and Warner Bros Discovery.
FuboTV had taken the matter to civil court on the grounds that the new alliance was anti-competitive.
TSX closes higher
Canada’s main stock index advanced on Monday, helped by strength in the financial and industrial sectors.
The S&P/TSX composite index rose 61.78 points to 23,116.39.
The Canadian dollar was trading at 73.25 cents US compared to 72.96 cents US on Friday.
On the New York Commodity Exchange, crude oil fell $1.88 to $73.66 a barrel, and natural gas rose 12 cents to $2.24 per million BTU.
The gold contract rose $3.50 to $2,541.30 an ounce and the copper contract jumped four cents to $4.18 a pound.
Associated Press