US Stocks Rebound, Semiconductors Shine, Boeing's Struggles Weigh On Dow: What's Driving Markets Monday?

Wall Street kicked off the week on a positive note, marking a turnaround from the challenging start to the year. All major stock indices showed gains, except for the Dow Jones, as financial conditions showed signs of improvement.

The yield on the 10-year Treasury Note dropped by 7 basis points, slipping below the 4% mark once again. Investors welcomed a widespread drop in the prices of major energy commodities, with both oil and natural gas declining by 4.5% and 2.5%, respectively, by noon in New York.

The tech-heavy Nasdaq 100 saw a robust rally, surging by 1.4%. It was on track for its most impressive daily performance in a month, primarily fueled by a boost in the Magnificent Seven and semiconductor companies. NVIDIA Corp. NVDA registered a gain of 4.4%, while Advanced Micro Devices Inc. AMD posted a substantial 5.2% increase.

The S&P 500 index recorded a 0.6% advance, with the technology sector leading the way. However, the energy, industrials, and financial sectors lagged behind in performance.

Small-cap stocks also made a comeback, with the iShares Russell 2000 ETF IWM surging by 1%. This positive movement followed six consecutive sessions of declines.

In contrast, the Dow Jones Industrial Average experienced a slight dip of 0.2%, largely influenced by Boeing Company BA, which saw a significant 7% drop in its stock price.

Bonds managed to recover after experiencing significant declines the previous week. The iShares 20+ Year Treasury Bond ETF TLT registered a gain of 1%. The U.S. dollar faced depreciation, with the U.S. dollar index (DXY) slipping by 0.4%.

Bitcoin BTC/USD once again made gains, surging beyond the $45,000 mark with a rise of over 2%. This surge was attributed to new entrants from traditional finance proposing Bitcoin ETF applications. The market anticipates a decision from the SEC later this week. In contrast, gold experienced a decrease of 0.7%, trading at $2,029 per ounce.

Monday's Performance In US Major Indices, ETFs

The SPDR S&P 500 ETF Trust SPY inched 0.6% higher to $470.70, the SPDR Dow Jones Industrial Average DIA fell 0.2% to $373.88 and the tech-heavy Invesco QQQ Trust QQQ rose 1.4% to $402.12, according to Benzinga Pro data.

Sector-wise, tech rallied, with the Technology Select Sector SPDR Fund XLK up 1.9%. The Real Estate Select Sector SPDR Fund XLRE also saw a notable uptick, up 1%.

On an industry level, semiconductors sharply outperformed, with the VanEck Semiconductor ETF SMH up 3%. Stocks in the oil and gas sector tumbled, with the SPDR Oil & Gas Exploration and Production ETF XOP falling 2.2%. Even sharper losses were felt in the downstream industry, with the VanEck Oil Services ETF OIH down 3.5%.

Monday's Stock Movers

• Boeing Company fell by 7%, its worst performance since late October 2022, following an FAA order to temporarily ground 171 Boeing 737 Max 9 jets after an emergency landing incident.
• NVIDIA rallied by nearly 5% as plans to produce its H20 artificial intelligence chip in the second quarter were reported by Reuters.
• AMD rose by over 5% after unveiling the new AMD Ryzen 8000G Series desktop processor and introducing Ryzen AI, featuring dedicated AI neural processing units for desktop personal computer processors.
• American Airlines AAL saw its stock rise by over 6% following an upgrade from Morgan Stanley, setting a price target of $20.
• Crocs Inc.‘s CROX stock surged by nearly 20% after the company raised its fourth-quarter sales forecast, citing a successful holiday season.
• Abercrombie & Fitch Company ANF achieved a 5.6% stock increase, reaching fresh all-time highs. This came after the company raised its fourth-quarter and annual net sales forecast due to strong demand during the holiday shopping period.
• Schlumberger N.V. SLB, Halliburton Company HAL and Baker Hughes Co. BKR experienced declines of 4.5%, 3.8%, and 4.6%, respectively, attributed to lower energy prices.

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