NEW YORK (AP) — Despite a late-session rally following comments from Federal Reserve Chair Jerome Powell on interest rates, the Dow Jones Industrial Average closed lower Monday. The market saw notable movement from companies such as Nvidia, Alphabet, and Apple, while fund manager Cathie Wood made strategic moves amidst a stock plunge.
Tech giant Nvidia surged on the back of a price-target hike, while Google-parent Alphabet and Apple also saw gains. However, social media company Snap fell after announcing job cuts, while other strong stocks such as MongoDB, Synopsys, and JFrog tested buy points.
Federal Reserve Chair Powell spoke out on interest rates in a rare interview, expressing caution about making quick rate cuts despite recent economic indicators. The ISM nonmanufacturing reading exceeded expectations, growing for the 13th consecutive month.
The Nasdaq composite initially rallied before ending the session down 0.2%, and the S&P 500 closed off lows but still ceded 0.3%. Furthermore, small caps were mauled with the Russell 2000 falling 1.1%.
On the Dow Jones, Caterpillar saw gains after strong earnings, while McDonald’s and Boeing stock faltered. Additionally, fund manager Cathie Wood purchased a significant number of Tesla shares amidst a significant pullback in the stock’s price.
Nvidia, a leader in artificial intelligence, surged 4.8% following a price-target hike, and Google-parent Alphabet saw a 0.9% increase. Outside the Dow Jones, Estee Lauder shone brightly, jumping nearly 12.1% after crushing earnings views and announcing a restructuring plan.
In addition, Novo Nordisk jumped 4% on word that its parent company, Novo Holdings, plans to acquire drugmaker Catalent for $11.5 billion. Meanwhile, strong stocks like MongoDB, Synopsys, and JFrog showed potential for entry and investment.
At the end of the day, Snap struggled after announcing job cuts, while Novo Nordisk stock popped on news of an acquisition and restructuring efforts. With the market’s continued strength, strong stocks continued to offer potential for investment.
Overall, the market showed a mix of strong performers and strugglers, demonstrating the ongoing volatility and opportunity for investors to navigate.