Nvidia & Tesla lead Nasdaq & Tech rebound
PUBLISHED
2024-07-23
Content
All three major indices finished in the green with the Tech names rebounding from last week’s selloff, as the rotation into the broader market and small companies took a breather.
The broad S&P 500 closed 1.1 per cent higher on the day, with the Nasdaq bouncing back to close 1.6 per cent higher. The Dow Jones finished 0.3 per cent higher.
In company news, Nvidia bounced back 4.8 per cent clawing back some of the lost ground from last week’s 8 per cent selloff. Tesla rallied over 5 per cent on the day and mega tech names Meta and Alphabet also rose more than 2 per cent. CrowdStrike continued its selloff falling another 13.5 per cent following last week’s 18 per cent loss.
Delta Air Lines shares fell over 3.5 per cent after the airline cancelled more than 700 flights as it continued to struggle with the CrowdStrike outage.
In good news for small companies, the Russell 2000 traded 1 per cent higher, adding to last week’s 6 per cent rally, as traders are now factoring in a greater than 90 per cent chance of a rate cut in September.
Investor focus is now on earnings releases from megacap tech names Alphabet and Tesla which are both due to release their quarterly earnings after the market closes on Tuesday (Wednesday AEST). Investors will have to wait until the following week for Microsoft, Meta, Amazon and Apple to report. Nvidia reports in late August.
Turning to US sectors, the best performer was Technology which closed 1.96 per cent higher. The worst performer was Energy which finished 0.72 per cent lower.
In European news, EU stocks closed higher as markets reacted to the news that U.S. President Joe Biden had dropped out of the U.S. presidential race. The European Stoxx 600 index closed 1 per cent higher for the day. Ryanair shares fell more than 17 per cent after the company announced its quarterly profit had fallen 46 per cent, and fares are expected to be lower in the summer months.
Futures
The SPI futures are pointing to a 0.7 per cent gain.
Currency
One Australian dollar at 7.30am was buying 66.43 US cents.
Commodities
Gold has lost 0.19 per cent. Silver has added 0.08 per cent. Copper has dropped 0.92 per cent. Oil has lost 0.44 per cent.
Figures around the globe
European markets closed higher. London’s FTSE added 0.53 per cent, Frankfurt gained 1.29 per cent, and Paris closed 1.16 per cent higher.
Turning to Asian markets, Tokyo’s Nikkei lost 1.16 per cent, Hong Kong’s Hang Seng gained 1.25 per cent, while China’s Shanghai Composite closed 0.61 per cent lower.
The Australian share market closed 0.50 per cent lower at 7931.74.
Ex-dividends
Spheria Emerging Co (ASX:SEC) is paying 3.4 cents fully franked
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.
Disclaimer
The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.
Author
Name | Peter Milios | Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research. |