US close: Dow sets new record but markets finish mixed

(Sharecast News) - US stocks finished in mixed fashion on Monday, but that didn't stop the Dow Jones Industrial Average setting a new all-time closing high as sentiment continues to be lifted by expectations of an imminent cut to interest rates. The Dow finished the day just 0.2% higher at a fresh peak of 41,240.52, extending gains recorded in the previous session after comments from Federal Reserve chairman Jerome Powell at the central bank's Jackson Hole economic symposium indicated he thought now might finally be the time to look at cutting benchmark interest rates.

While Powell did not say when the Fed would look to cut rates, or by how much, traders seem to be convinced that the central bank will make a move at its September policy meeting.

Nevertheless, the S&P 500 fell 0.3% to 5,616.84, but remains just inches away from its record high, while the Nasdaq dropped 0.9% to 17,725.76 as chip stocks and the wider tech sector weighed heavily on the index.

Stephen Innes, managing partner at SPI Asset Management, said the mixed performance of Wall Street's three main benchmarks "actually backs up the broader market rotation thesis". He said: "As the tech giants take a breather, small-caps have seized the moment, basking in their time in the spotlight. It's a healthy sign that the market's not just a one-trick pony, and there's still plenty of opportunity across the board."

In macro news on Monday, US durable goods orders surged by 9.9% in July, according to the Census Bureau, well ahead of expectations of a 5.5% rise and erasing June's 6.9% decline. It also marked the biggest monthly increase since May 2020.

Elsewhere, the Dallas Federal Reserve's manufacturing business index improved to -9.7 in August, up from -17.5 in July, marking the lowest contraction level since January 2023.

Chip stocks drop

The semiconductor sector was out of favour on Monday ahead of Nvidia's hotly anticipated earnings report later in the week. Nvidia itself fell 2.3% during the session, having gained 21% over the past three weeks alone, and 163% so far this year. Arm, Micron and AMD also dropped.

Other heavyweights in the tech sector such as Microsoft, Amazon, Meta Platforms, and Tesla all "decided to hit the snooze button on their recent rallies", said SPI's Innes. "The bulls aren't resting easy just yet; there's a lot of nervous pacing as they question how much fuel is left in the earnings tank and whether the Fed's rate-cutting spree will be enough to keep the broader Magnificent 7 from crashing back down to Earth with a thud."

One notable faller was PDD Holdings, as US-listed shares of the Chinese ecommerce giant tanked 29% on the back of a worse-than-expected second-quarter report.

Dow Jones - Risers

Coca-Cola Co. (KO) $70.84 1.50% Walt Disney Co. (DIS) $91.78 1.35% American Express Co. (AXP) $253.88 1.03% 3M Co. (MMM) $131.85 1.00% International Business Machines Corporation (CDI) (IBM) $197.97 0.96% Dow Chemical Co. (DOW) $54.03 0.93% Caterpillar Inc. (CAT) $351.16 0.79% Walgreens Boots Alliance, Inc. (WBA) $10.38 0.78% Procter & Gamble Co. (PG) $170.35 0.70% Verizon Communications Inc. (VZ) $41.49 0.68%

Dow Jones - Fallers

Intel Corp. (INTC) $20.13 -2.00% Boeing Co. (BA) $173.48 -0.85% Microsoft Corp. (MSFT) $413.49 -0.79% Amgen Inc. (AMGN) $326.78 -0.61% Home Depot Inc. (HD) $374.11 -0.39% Goldman Sachs Group Inc. (GS) $507.87 -0.30% McDonald's Corp. (MCD) $288.68 -0.29% Merck & Co. Inc. (MRK) $116.27 -0.28%

S&P 500 - Risers

VF Corp. (VFC) $17.70 3.63% Jack Henry & Associates Inc. (JKHY) $168.84 2.56% Eog Resources Inc. (EOG) $130.06 2.49% Xcel Energy Inc. (XEL) $61.46 2.23% Leggett & Platt Inc. (LEG) $12.93 2.21% Exxon Mobil Corp. (XOM) $118.81 2.14% ConocoPhillips (COP) $113.56 1.94% Chipotle Mexican Grill Inc. (CMG) $54.75 1.94% Charter Communications Inc. (CHTR) $355.37 1.90% Nucor Corp. (NUE) $150.44 1.83%

S&P 500 - Fallers

Gap Inc. (GAP) $23.34 -4.93% Broadcom Inc. (AVGO) $159.62 -4.05% Micron Technology Inc. (MU) $98.91 -3.83% Lam Research Corp. (LRCX) $818.91 -3.36% Advanced Micro Devices Inc. (AMD) $149.99 -3.22% Applied Materials Inc. (AMAT) $196.23 -3.18% Coty Inc. Class A (COTY) $9.66 -3.01% Edwards Lifesciences Corp. (EW) $68.75 -3.01% Arista Networks Inc. (ANET) $344.69 -2.94% Qorvo, Inc. (QRVO) $112.39 -2.71%

Nasdaq 100 - Risers

Liberty Global plc Series A (LBTYA) $19.36 2.76% Liberty Global plc Series C (LBTYK) $19.97 2.62% Charter Communications Inc. (CHTR) $355.37 1.90% Starbucks Corp. (SBUX) $95.63 1.71% Gen Digital Inc. (GEN) $26.14 1.63% Incyte Corp. (INCY) $65.16 1.59% Costco Wholesale Corp. (COST) $892.51 1.51% Monster Beverage Corp (MNST) $47.28 1.35% Comcast Corp. (CMCSA) $40.25 1.08% T-Mobile Us, Inc. (TMUS) $200.43 0.93%

Nasdaq 100 - Fallers

Broadcom Inc. (AVGO) $159.62 -4.05% JD.com, Inc. (JD) $25.80 -3.84% Micron Technology Inc. (MU) $98.91 -3.83% Lam Research Corp. (LRCX) $818.91 -3.36% Tesla Inc (TSLA) $213.21 -3.23% Applied Materials Inc. (AMAT) $196.23 -3.18% Sirius XM Holdings Inc (SIRI) $3.11 -2.81% Qurate Retail Inc. (QRTEA) $0.64 -2.70% Asml Holdings N.V. (ASML) $883.31 -2.64% Western Digital Corp. (WDC) $62.69 -2.58%