Nvidia helps Nasdaq to break new ground
The Nasdaq crossed 17,000 for the first time ever on Tuesday, boosted by gains in Nvidia, while the S&P 500 closed slightly higher and the Dow slightly lower as Treasury yields rose. Nvidia shares boosted shares of other chip stocks as traders returned from a holiday-extended weekend. Stocks lost ground in the afternoon as US Treasury yields climbed to multi-week highs after weak debt auctions. The S&P 500 gained 0.03 percent to 5,306, the Nasdaq Composite gained 0.6 percent to 17,019. The Dow Jones Industrial Average fell 0.6 percent to 38,852. Investors awaited US inflation data this week that could sway expectations for Federal Reserve rate cuts. The US core Personal Consumption Expenditures Price Index report for April is due later this week. The Fed's preferred inflation barometer is expected to hold steady on a monthly basis. S&P 500 technology led gains among sectors, while healthcare was the biggest decliner. "It’s all about technology and the winners continue to be the winners, specifically Nvidia," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles. Wall Street has been hitting records recently as investors bet the US central bank could kick off interest-rate cuts this year. Expectations for the timing of rate cuts have see-sawed, with policymakers wary as data still reflects sticky inflation. The retail sector will also be in focus this week, with several retailers due to report results. US trading moves to a shorter settlement on Tuesday, which regulators hope will reduce risk and improve efficiency, but is expected to temporarily increase transaction failures for investors. (Reuters)