The New York Stock Exchange saw gains on Monday, continuing its upward trend from recent weeks, spurred by the start of monetary easing.
The Dow Jones gained 0.15%, and the S&P 500 increased by 0.28%, both setting new closing records, while the Nasdaq rose by 0.14%.
LBBW Analyst Karl Haeling attributes the market’s strength to the actions of several central banks, which have begun lowering interest rates due to easing inflation. Haeling noted that this trend is “positive for stocks.”
Less prominent stocks fuel high S&P500 gains
In a note, analysts from Briefing.com expressed optimism about the US economy’s potential for a “soft landing.”
The S&P 500 outperformed, benefiting from opportunistic buying in less prominent stocks. Notable gainers included Comcast (+1.55%), Chevron (+1.28%), and Costco (+1.11%).
Haeling believes that after the Federal Reserve’s significant rate cut last week, investors are confident that the Fed can act swiftly if the labour market weakens.
Boeing, Intel, Tesla surge
Boeing’s stock rose by 1.96% after the company presented new proposals to the machinists’ union (IAM) to resolve a strike that began on 13 September. The new offer includes a 30% wage increase over four years, up from the previous 25%.
Intel saw a 3.30% rise following a Bloomberg report that Apollo Global Management is willing to invest up to $5 billion in the semiconductor manufacturer. On Friday, The Wall Street Journal had reported that competitor Qualcomm had made a preliminary approach for a potential acquisition of Intel.
Tesla surged by 4.93% as the US government announced new regulations banning Chinese and Russian technology in connected vehicles. US authorities stated that manufacturers would need a transition period to comply with the ban, which will take effect for physical equipment in 2029.
Trump Group plunges by 10.33%
Trump Media and Technology Group (TMTG) plunged by 10.33%, as the expiry on Friday of the six-month 'lock-up' period after the launch of its initial public offering (IPO) in late March sparked fears that company insiders would start selling off their shares.
Monday's slide in share value occurred even though Donald Trump, TMTG's largest shareholder with 57% of the capital, vowed not to sell his stake.
The value of Trump's stake dropped from $9 billion soon after the IPO launch to $1.4 billion at Monday’s close.
