Nvidia boost sends Nasdaq, S&P higher
The Nasdaq ended more than 1 percent higher and the S&P 500 also rose on Monday, with shares of Nvidia jumping as investors were optimistic ahead of its earnings this week, and other technology-related stocks gaining. The Dow Jones industrial average ended slightly lower. The yield on 10-year Treasury notes hit highs last seen during the Great Financial Crisis in 2007 as investors looked warily toward a meeting of central bankers who convene on Thursday at Jackson Hole in Wyoming. Federal Reserve Chair Jerome Powell is due to speak on Friday. The technology sector gave the biggest boost to the S&P 500 and Nasdaq, while an index of semiconductors advanced 2.8 percent. Nvidia rose 8.5 percent, leading gains among semiconductor stocks, as HSBC raised its price target on the stock to US$780, the second highest on Wall Street. Nvidia, one of the biggest winners in this year's artificial intelligence tech stock rally, is expected to forecast quarterly revenue above analysts' estimates when it reports late on Wednesday. Nvidia's stock is up more than 220 percent for the year so far, while the Nasdaq is up 29 percent. "Nvidia is considered the brand for AI," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina. "Their targets have been lifted dramatically, so the question is, can they deliver... A catalyst coming in with Nvidia would be extremely helpful." At the same time, she said, investors are anxious to hear Powell's comments at Jackson Hole. Concerns the Fed will keep interest rates higher for longer have pushed up US Treasury yields, and fanned worries about the impact of higher rates on businesses and consumers. The Dow Jones Industrial Average fell 0.11 percent, to 34,464, the S&P 500 gained 0.69 percent, to 4,400 and the Nasdaq Composite added 1.56 percent, to 13,498. Among decliners in the Dow, Johnson & Johnson shares fell 3 percent after the healthcare conglomerate said it was expecting to retain a stake of about 9.5 percent in its newly separated consumer health unit, Kenvue. (Reuters)