of S&P 500 Stock indexes suffered their worst weekly drop since April but hit their highest close since June 5 on Monday as technology shares rebounded.
The benchmark rose 1.08% to close at 5,564.41, its highest since June 5. Nasdaq Composite Index It rose 1.58% to close at 18,007.57. Dow Jones Industrial Average It rose 127.91 points, or 0.32 percent, to close at 40,415.44.
Nvidia rose 4.8%, recovering somewhat from last week’s 8% drop. Other major tech stocks, including Meta Platforms and Alphabet, also rose more than 2%. CrowdStrike was the worst-performing stock in the S&P 500, falling 13.5%, adding to last week’s nearly 18% drop.
“We’re seeing a return to the technology sector after some pretty significant selling pressure that was exacerbated by the CrowdStrike collapse,” said Mona Mahajan, senior investment strategist at Edward Jones. “The combination of expanding earnings and the Fed’s rate cuts is giving investors some hope.”
Tech stocks came under pressure last week as investors shifted from tech stocks to smaller companies, leading to a drop of nearly 2% in the S&P 500 last week. The Nasdaq fell more than 3% in the same period.
Despite the big rally in tech stocks, small-cap stocks held up: The Russell 2000 closed up about 1.7% on Monday.
Traders also focused on the political situation in the United States following the inauguration of the president. Joe Biden Dropped Dropped out of the presidential race The vice president was confirmed on Sunday. Kamala HarrisAfter Biden’s disastrous defeat in the June debate, many analysts saw former President Biden’s chances of victory as increasing. Donald Trump In November.
Corporate earnings and central bank policy remain top of mind on Wall Street, with traders pricing in a nearly 93% chance that the Federal Reserve will cut interest rates when it meets in September.
