NEW YORK (AP) U.S. stocks hit record highs Monday as gains for technology companies continue to push the market higher.
The S&P 500 rose 0.8% to its all-time high set Thursday. The Dow Jones Industrial Average gained 188 points, or 0.5%, while the Nasdaq composite added 1% to its own record.
Autodesk jumped 6.5%, one of the biggest gains in the market, after an investment firm said it would try to delay the software maker's annual meeting so it could appoint new directors to the board of directors. Starboard Value also discussed how it believes Autodesk has not performed as well financially as it should have. In response, Autodesk said it would consider Starboards' suggestions, but added that it has a clear strategy that works.
Just behind Autodesk is chip company Broadcom, which rose 5.4% to add to last week's gains after reporting better-than-expected profit and announcing it would undergo a 10-for-one stock split. to make its price more affordable. Broadcom followed Nvidiathe company that became the epitome of Wall Street's frenzy around artificial intelligence technology and which has just made a similar split.
Broadcom was one of the most powerful forces pushing the S&P 500 higher, with Apple up 2% and Microsoft up 1.2%.
According to Anthony Saglimbene, chief market strategist at Ameriprise, continued momentum in big tech stocks, along with easing pressure on inflation, has investors cheering the glass-half-full outlook instead of being complacent. focus on the struggles of low- and middle-income Americans and other challenges. .
Super Micro Computer, which sells servers and storage systems used in artificial intelligence and other computing systems, jumped 5.1% to take its gain for the year so far to a staggering 212,000. 2%. It's also part of the supernova around AI that has eclipsed almost everything else on Wall Street.
Gains in the technology sector helped offset pressure on the stock market caused by rising Treasury yields in the bond market. The rise in yields erased some of the slowdown created last week when results were better than expected. reports on inflation raises hopes that the Federal Reserve lower interest rates Later this year.
Next week, there will be few major economic reports for the United States, beyond Tuesday's update on customer spending at U.S. retailers and Friday's preliminary review of the state of commercial activity in the United States. The markets will also be closed on Wednesday for the June 16 holiday.
A report released Monday says manufacturing in New York state continues to contract, but not as much as economists had hoped. Manufacturing has been one of the areas hardest hit by the Federal Reserve's zeal to keep its main interest rate at the highest level in more than two decades.
The Fed is trying to keep rates high long enough to slow the economy and quell high inflation, but it wants to cut rates and reverse the momentum before the slowdown turns into a painful recession.
High interest rate These measures harm all types of investments and tend to hit certain areas particularly hard. S&P 500 utilities fell 1.1%, the largest loss Monday among the 11 sectors that make up the index. They are often hurt when bonds pay higher interest and attract income-seeking investors who would otherwise turn to dividend-paying utility stocks.
Stoppage of play was another laggard and fell 12.1% after its annual shareholder meeting. The stock soared and sank as it went waves of enthusiasm by investors with more modest pockets. At the meeting, CEO Ryan Cohen said the struggling video game retailer would focus on cutting costs, which would involve a smaller store network.
Overall, the S&P 500 rose 41.63 points to 5,473.23. The Dow Jones gained 188.94 to 38,778.10 and the Nasdaq composite jumped 168.14 to 17,857.02.
On the bond market, the yield on 10-year Treasury bills rose to 4.28% from 4.22% Friday evening. The two-year Treasury yield, which more closely tracks Fed expectations, rose to 4.76% from 4.71%.
On foreign stock markets, European indices calmed down somewhat after rout of recent weeks. France's CAC 40 index rose 0.9% after its worst week in two years on concerns that possible power losses by the president's centrist party could lead to significantly higher debt for the country.
Europe's modest gains followed Asia's losses. Japan's Nikkei 225 fell 1.8%.
AP Business Writer Elaine Kurtenbach contributed.
