Major U.S. equity indexes kicked off the week by reaching fresh highs, setting the stage for a week packed with significant events including Federal Reserve Chair Jerome Powell’s Congressional testimony, the release of the Consumer Price Index (CPI), and the start of earnings season for banking giants.
The S&P 500 inched up 0.1% on Monday, extending its streak of consecutive all-time closing highs that began early last week. Similarly, the Nasdaq advanced 0.2%, continuing its own series of record closes, while the Dow closed slightly lower by 0.1%.
Market Movers
Corning (GLW) saw a notable surge of 12% in its stock price, marking the top performance among S&P 500 stocks for the day. The boost came after the specialty glass manufacturer raised its guidance for the current quarter, citing strong demand for its optical connectivity products used in AI applications.
Super Micro Computer (SMCI) shares jumped 6.2% as part of a broader rally in AI-related stocks. The company, known for its servers and data storage hardware, has garnered investor attention for its potential in the AI server market, with its stock price more than tripling since the year began.
Intel (INTC) also rose by 6.2% following positive remarks from Melius Research, highlighting the semiconductor giant’s potential to catch up with its tech sector peers. The analysis suggested that Intel, along with other “AI Laggards” like AMD, Apple, and IBM, could see strength in the latter half of 2024, buoyed by their chips’ inclusion in Microsoft’s new AI-enabled PCs. AMD shares were up 4% on Monday as well.
Paramount Global (PARA) experienced the largest decline among S&P 500 constituents, dropping 5.3%. The entertainment company’s stock fell after finalizing a merger deal with Skydance Media, ending months of negotiations and causing significant stock volatility. Skydance founder David Ellison is slated to become CEO of the merged entity.
Etsy (ETSY) shares also fell by 5.3% on Monday. The online crafts marketplace announced restrictions on certain product sales deemed inappropriate for its customer base. Earlier concerns were raised when Etsy’s first-quarter earnings missed expectations, coupled with warnings of potential slowdowns in consumer discretionary spending.
Chipotle Mexican Grill (CMG) saw a decline of 5.2% amid ongoing volatility since its 50-for-1 stock split at the end of June. Criticism over portion sizes from customers, highlighted in a recent Wells Fargo study indicating inconsistencies, added pressure on the burrito chain’s stock price.
Outlook
As the week unfolds, investors are keenly focused on Powell’s testimony, CPI data, and corporate earnings reports, all of which will provide critical insights into the economy’s trajectory and potential market movements ahead.
