Traders work on the floor at the New York Stock Exchange on May 17, 2024.
Brendan Mcdermid | Reuters
The Nasdaq Composite rose on Monday, powered by gains in Nvidia and other tech companies. Meanwhile, the Dow Jones Industrial Average lagged the broader market as JPMorgan Chase led losses.
The tech-heavy Nasdaq gained 0.65% to reach an all-time intraday high and close at a record level at 16,794.87. The S&P 500 inched up 0.09% to 5,308.13. The 30-stock Dow fell 196.82 points, or 0.49%, to 39,806.77.
Shares of JPMorgan declined 4.5% as CEO Jamie Dimon signaled during the bank’s annual investment meeting that his retirement may be sooner than previously stated. Dimon also said the bank would not repurchase shares at their current levels. The stock is up about 15% year to date.
Artificial intelligence names are due to steal the spotlight this week. Investors will be keeping a close eye on Nvidia’s fiscal first-quarter results due Wednesday afternoon to gauge the strength of the AI-led rally.
Nvidia shares on Monday gained more than 2% on multiple bullish analyst calls that highlighted the company’s preeminent market position. Several Wall Street firms also increased their price target on the chipmaker ahead of its earnings report, suggesting shares could gain as much as 30% from their current levels.
The stock is up 91.4% in 2024 alone and is 203.2% higher over the past 12 months.
Nvidia’s market cap is now the third-largest in the S&P 500 at $2.3 trillion. Options traders are also pricing in an approximate move of 8% on earnings for the chipmaker.
Nvidia shares in the past year
Stocks are coming off a strong week, with the S&P 500 posting a four-week winning streak as it notched record highs. The Dow also rose for a fifth straight week.
The market rally has more room for growth from its all-time highs, according to UBS strategist Vincent Heaney.
“While a range of economic and geopolitical risks remain, we think solid economic and earnings growth, the prospect of lower interest rates, and rising investment in AI should create a supportive backdrop for equities for the rest of this year,” Heaney wrote in a Monday note.