(New York) The New York Stock Exchange concluded in the green on Monday, starting a shortened week on a high note, for the NASDAQ and the broader S&P 500 index which reached new records.
Carried by the usual big names, from Microsoft to Apple, the predominantly technological NASDAQ reached a new peak, climbing 0.95% to 17,857.02 points. The S&P 500 advanced 0.77% and also crossed a record at 5473.23 points. The Dow Jones gained 0.49% to 38,778.10 points.
On Wednesday, US markets will be closed to observe the June 19 holiday, “Juneteenth”, which celebrates the end of slavery in the United States.
“The market is proving very resilient, supported by the enthusiasm for artificial intelligence,” commented Peter Cardillo of Spartan Capital.
For once, the shares of the AI chip designer, Nvidia, did not lead the race (-0.68%), but the group’s valuation on the stock market is hot on the heels of the two other leaders, Apple (+1, 97%) and Microsoft (+1.31%).
If Nvidia’s stock, which took a break on Monday, continues its run after having gained 173% since the start of the year, this promises to soon be a new trifecta for the world’s largest capitalizations.
“The progression of tech stocks linked to the development of AI has outpaced the rest of the market,” also noted Art Hogan of B. RIley Wealth Management.
Telecom infrastructure giants like Broadcom (+5.41%) and Qualcomm (+3.20%) have thus benefited from the momentum that the transmission of artificial intelligence services will provide.
Microprocessor giant Intel gained 1.63%.
On the macroeconomic level, investors weighed the Empire State index of manufacturing activity in the New York region, which remained in contraction in June even if it improved a little.
American bond rates have risen, those at ten years to 4.27% against 4.22% on Friday after their rapid fall due to political uncertainties in Europe when French debt rates soared after the European elections and the surprise dissolution of the National Assembly.
The dollar returned 0.29% to the euro at 1.0734 dollars per euro.
On Friday the greenback rose against the European currency which was now worth only 1.0695 dollars per euro, the lowest in a month and a half.
The slight tension on bond yields was explained, according to Peter Cardillo, by the fact that the president of the Minneapolis Fed, Neil Kashkari, indicated on Sunday that it was “reasonable to predict” a rate cut by the central bank American in December.
“This pushes back the deadline for the rate cut a little”, while the majority of the market is counting on a reduction in the cost of credit from September, underlined the Spartan Capital analyst.
On the market, stocks relating to distribution and commerce were sought after, as investors await monthly data on retail sales in the United States on Tuesday.
Electronic store brand Best Buy climbed 4.64% after favorable comments from analysts and the announcement of the distribution of a comfortable dividend.
Several chains were favored by the market such as Dicks Sporting Goods (+4.33%), the Target department stores (+2.70%) and the semi-wholesale seller Costco (+1.43%).
Industrial 3D software company Autodesk soared 6.48% to $240.51 after an activist shareholder demanding improvements revealed a $500 million stake in the company .
The TSX falls more than 50 points
The main Canadian stock index fell on Monday, while American markets reached near record levels.
The S&P/TSX Composite Index lost 51.22 points to 21,587.88.
The Canadian dollar traded at 72.76 US cents, up from 72.72 US cents on Friday.
On the New York Mercantile Exchange, crude oil prices rose US$1.88 to US$80.33 per barrel and natural gas prices fell nine cents to US$2.79 per thousand cubic feet. .
The gold contract was down US$20.10 at US$2,329.00 an ounce and the copper contract was down five cents at US$4.45 a pound.