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Stock Market News for Aug 27, 2024

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Wall Street closed mixed on Monday, weighed down by tech and discretionary stocks. Worries about the upcoming quarterly performance of a semiconductor giant dampened investor mood. Two of the three most widely followed indexes closed the session in the red, while one ended in the green.

How Did the Benchmarks Perform?

The Dow Jones Industrial Average (DJI) rose 65.44 points, or 0.2%, to close at 41,240.52. Twenty-one components of the 30-stock index ended in positive territory, while nine ended in negative.

The tech-heavy Nasdaq Composite shed 152.03 points, or 0.9%, to close at 17,725.77.

The S&P 500 decreased 17.77 points, or 0.3%, to close at 5,616.84. Five of the 11 broad sectors of the benchmark index closed in the red. The Technology Select Sector SPDR (XLK) and the Consumer Discretionary Select Sector SPDR (XLY) slid 1.3% and 0.8%, respectively, while the Energy Select Sector SPDR (XLE) advanced 0.9%.

The fear-gauge CBOE Volatility Index (VIX) increased 1.8% to 16.15. A total of 9.5 billion shares were traded on Monday, lower than the last 20-session average of 11.9 billion. Advancers outnumbered decliners by a 1.1-to-1 ratio on the S&P 500.

NVIDIA Weighs Down on the Markets

On Monday, NVIDIA Corporation’s (NVDA - Free Report) shares dropped 2.3%, bringing down the tech sector with it. While there is some apprehension that anything short of an outstanding outlook from the company’s Wednesday quarterly earnings release can bring gloom and doom, Monday’s slide, in reality, is a bit of correction before an expected post-earnings boost.

Nvidia is the global market leader in AI chip design and software, controlling around 90% of the market, and its fortunes have a direct impact not only on new-generation tech but AI optimism in general. The market will be looking forward to the company’s earnings.

Shares of Broadcom Inc. (AVGO - Free Report) and Super Micro Computer, Inc. (SMCI - Free Report) fell 4.1% and 8.3%, respectively. SMCI currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Oil Prices Climb, Driving the Market’s Gains

The Libyan government announced the closure of all oil fields on Monday, halting production and exports. This added to supply concerns amid escalating conflict in the Middle East, and oil prices surged. Energy was the biggest winning sector in the session.

Brent crude ended $2.41, or 3.1%, at $81.43/barrel, while WTI crude settled $2.59, or 3.5%, higher at $77.42/barrel.

Economic Data

Per the U.S. Census Bureau, durable goods orders for July increased 9.9%. This follows a 6.9% June decrease.


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