GS is considering a move to sell a business segment for affluent clients. Palo Alto Networks is on the rise amid positive expectations. Indices: Dow dipped by 0.1%, S&P 500 rose by 0.7%, and Nasdaq soared by 1.6%. The week started strong for Nasdaq and S&P 500. Nvidia shares provided a significant boost, attracting optimistic investor outlooks. As other tech stocks have shown, interest in them is growing.
But not everything is rosy: the Dow Jones industrial index slightly conceded its position. Investors are closely monitoring the yield of 10-year treasury bonds, which has reached a level last seen during the Great Financial Crisis of 2007. All eyes are on the meeting of the heads of the world's central banks in Jackson Hole. On the agenda? Jerome Powell's statement on Friday.
The technology sector drives the most significant growth of the S&P 500 and Nasdaq. Nvidia shares rocketed 8.5%, primarily due to HSBC, which set a target share price of $780 - one of the highest on Wall Street.
Nvidia, the AI market star this year, is forecasted to exceed analysts' quarterly income predictions. The company's shares have shot up 220% over the year, with Nasdaq maintaining a 29% growth rate.
In a nutshell about Nvidia: "Nvidia is top-tier artificial intelligence," says Quincy Crosby from LPL Financial. "It'll be interesting to see if they meet their set targets... Nvidia might become the main player this week."
And don't forget to pay attention to the US Federal Reserve: its leaders will gather for an essential annual symposium in Jackson Hole.
Everyone is awaiting Powell's speech to gauge the pulse of the economy and understand the next steps regarding rates. This anticipation is particularly heightened after recent central bank data made many ponder the possibility of inflation growth.
And what about the stock market? Dow Jones slightly decreased, losing 36.97 points. But stay optimistic, as both the S&P 500 and Nasdaq moved upwards, gaining 30.06 and 206.81 points, respectively.
Regarding company news, Johnson & Johnson shares dropped by 3%. Why? They expect to retain about 9.5% in their new Kenvue division. And yes, Goldman Sachs also took a slight hit, contemplating the sale of part of its assets.
Meanwhile, in the tech world, Palo Alto Networks shares are thriving, showing a 14.8% growth! Their latest report, with strong quarterly data and forecasts, has convinced many of their stability. VMware hasn't been left out either; their shares jumped by 4.9% following the approval of a deal with Broadcom, which, by the way, is also up by 4.8%.
Activity on the U.S. stock exchanges was below average. A total of 9.75 billion shares were traded, less than the standard of 10.99 billion looking at the past 20 trading days.
When it comes to individual stocks, the situation was more complex. On the NYSE, declining stocks outnumbered the advancing ones at a ratio of 1.44 to 1. As for Nasdaq, the advantage was with the declining stocks, with a ratio of 1.08 to 1.
An interesting fact: The S&P 500 presented itself rather ambiguously, showing 3 new annual highs and a whole 18 lows. And Nasdaq? There was even greater volatility there, with 36 new highs and a staggering 214 new lows. This indicates that investors are currently on their toes, evaluating a plethora of factors before making buy or sell decisions.
