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Wall Street closed higher on Monday, led by mega-cap growth stocks. Investors remained cautious about what to expect from the inflation numbers due later this week amid buoyant optimism centering artificial intelligence (AI). All three major stock indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.3% or 87.13 points to close at 34,663.72. Nineteen components of the 30-stock index ended in positive territory, while 11 ended in negative.
The tech-heavy Nasdaq Composite jumped 156.37 points or 1.1% to 13,917.89.
The S&P 500 rose 0.7%, or 29.97 points, to end at 4,487.46. Ten of the 11 broad sectors of the benchmark index closed in the green. The Consumer Discretionary Select Sector SPDR (XLY), the Communication Services Select Sector SPDR (XLC) and the Consumer Staples Select Sector SPDR (XLP) rose 2.7%, 1.5% and 0.9%, respectively, while the Energy Select Sector SPDR (XLE) fell 1.3%.
The fear-gauge CBOE Volatility Index (VIX) decreased 0.3% to 13.80. A total of 9.3 billion shares were traded on Monday, lower than the last 20-session average of 10 billion. Advancers outnumbered decliners on the S&P 500 by a 1.5-to-1 ratio.
Tesla Boom Drives the Market
Stocks of Tesla, Inc. (TSLA - Free Report) shot up 10.1% on Monday after Morgan Stanley said that the automaker’s Dojo supercomputer could bring in a $600 billion surge in its market value. The supercomputer could help the company delve into the areas of robotaxis and software services. The production of the supercomputer intended to train AI models for self-driving cars started in July, and Tesla plans to invest an additional $1 billion in Dojo through 2024.
This brought about an AI optimism in the market and investors flocked to buy mega-cap growth and technology stocks. Also, the consumer discretionary sector was booming. Market participants are currently expecting that the Fed will not raise the interest rate level in its September meeting and are hoping that the inflation numbers will show moderate inflation for the central bank to do that.
Activity seen in the stock market revolved around sectors that historically do not do well in times of an economy slowing down, and thus raises hope among investors. However, much of the gains that the technology sector has made in 2023 have been about the positivity surrounding the breakthroughs made in the field of AI. Monday was no different.
Throughout last week, the market has been feeling the heat of rising energy prices born out of Saudi’s decision to not increase production till the end of 2023. However, the prices remained flat, mostly down on Monday, to allay some of those fears.
On Monday, Deputy Treasury Secretary of the United States, Wally Adeyemo, commented that China's economic problems were more likely to have a local impact than affect the United States. U.S. Crude inventories, meanwhile, are expected to fall for a fifth week in a row.
Brent crude settled down 1 cent to $90.64 a barrel, while WTI crude settled down 22 cents to $87.29.
No economic data was released on Monday.
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Stock Market News for Sep 12, 2023
Wall Street closed higher on Monday, led by mega-cap growth stocks. Investors remained cautious about what to expect from the inflation numbers due later this week amid buoyant optimism centering artificial intelligence (AI). All three major stock indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.3% or 87.13 points to close at 34,663.72. Nineteen components of the 30-stock index ended in positive territory, while 11 ended in negative.
The tech-heavy Nasdaq Composite jumped 156.37 points or 1.1% to 13,917.89.
The S&P 500 rose 0.7%, or 29.97 points, to end at 4,487.46. Ten of the 11 broad sectors of the benchmark index closed in the green. The Consumer Discretionary Select Sector SPDR (XLY), the Communication Services Select Sector SPDR (XLC) and the Consumer Staples Select Sector SPDR (XLP) rose 2.7%, 1.5% and 0.9%, respectively, while the Energy Select Sector SPDR (XLE) fell 1.3%.
The fear-gauge CBOE Volatility Index (VIX) decreased 0.3% to 13.80. A total of 9.3 billion shares were traded on Monday, lower than the last 20-session average of 10 billion. Advancers outnumbered decliners on the S&P 500 by a 1.5-to-1 ratio.
Tesla Boom Drives the Market
Stocks of Tesla, Inc. (TSLA - Free Report) shot up 10.1% on Monday after Morgan Stanley said that the automaker’s Dojo supercomputer could bring in a $600 billion surge in its market value. The supercomputer could help the company delve into the areas of robotaxis and software services. The production of the supercomputer intended to train AI models for self-driving cars started in July, and Tesla plans to invest an additional $1 billion in Dojo through 2024.
This brought about an AI optimism in the market and investors flocked to buy mega-cap growth and technology stocks. Also, the consumer discretionary sector was booming. Market participants are currently expecting that the Fed will not raise the interest rate level in its September meeting and are hoping that the inflation numbers will show moderate inflation for the central bank to do that.
Activity seen in the stock market revolved around sectors that historically do not do well in times of an economy slowing down, and thus raises hope among investors. However, much of the gains that the technology sector has made in 2023 have been about the positivity surrounding the breakthroughs made in the field of AI. Monday was no different.
Consequently, shares of Microsoft Corporation (MSFT - Free Report) and Amazon.com, Inc. (AMZN - Free Report) advanced 1.1% and 3.5%, respectively. Amazon carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Oil Prices Remain Flat on Monday
Throughout last week, the market has been feeling the heat of rising energy prices born out of Saudi’s decision to not increase production till the end of 2023. However, the prices remained flat, mostly down on Monday, to allay some of those fears.
On Monday, Deputy Treasury Secretary of the United States, Wally Adeyemo, commented that China's economic problems were more likely to have a local impact than affect the United States. U.S. Crude inventories, meanwhile, are expected to fall for a fifth week in a row.
Brent crude settled down 1 cent to $90.64 a barrel, while WTI crude settled down 22 cents to $87.29.
No economic data was released on Monday.