Markets

Nasdaq Soars To New Record Closing High, Dow Closes Slightly Higher

(RTTNews) - Stocks moved mostly higher over the course of the course of the trading session on Monday following the mixed performance last week. The tech-heavy Nasdaq showed a particularly strong upward move, reaching a new record closing high.

The major averages all closed in positive territory, although the Dow underperformed its counterparts, inching up just 8.92 points or less than a tenth of a percent to 26,680.87. The Nasdaq soared 263.90 points or 2.5 percent to 10,767.09 and the S&P 500 climbed 27.11 points or 0.8 percent to 3,251.84.

The spike by the Nasdaq came as traders cycled back into big-name tech stocks after the index slumped by 1.1 percent last week.

Shares of Amazon (AMZN) skyrocketed by 7.9 percent after Goldman Sachs and Jefferies both raised their price targets for the online retail giant to $3,800 per share.

Software giant Microsoft (MSFT), Google parent Alphabet (GOOGL) and tech giant Apple (AAPL) also posted standout gains.

The jump by Microsoft also contributed to significant strength in the software sector, with the Dow Jones U.S. Software Index soaring by 4.1 percent.

Retail stocks also showed a substantial move to the upside on the day, driving the Dow Jones U.S. Retail Index up by 3.5 percent to a new record closing high.

Considerable strength was also visible among gold stocks, as reflected by the 2.9 percent jump by the NYSE Arca Gold Bugs Index.

The rally by gold stocks came amid an increase by the price of the precious metal, with gold for August delivery climbing $7.40 to $1,817.40 an ounce.

Semiconductor, biotechnology and networking stocks also saw notable strength, contributing to the spike by the tech-heavy Nasdaq.

On the other hand, airline stocks moved sharply lower over the course of the session, dragging the NYSE Arca Airline Index down by 2.8 percent.

Tobacco, utilities, and chemical stocks also came under pressure on the day, partly offsetting the strength seen in the aforementioned sectors.

The strength on Wall Street also came following positive results from trials of experimental COVID-19 vaccines by Oxford University and AstraZeneca (AZN) and Pfizer (PFE) and BioNTech (BNTX).

The positive news on the vaccine front came as some states continue to see spikes in coronavirus cases, with Florida reporting 12,523 new cases on Saturday, reflecting the fifth consecutive day the state reported more than new 10,000 infections.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan's Nikkei 225 Index inched up by 0.1 percent and China's Shanghai Composite Index soared by 3.1 percent, while Australia's S&P/ASX 200 Index fell by 0.5 percent.

The major European markets also ended the day mixed. While the U.K.'s FTSE 100 Index slid by 0.5 percent, the French CAC 40 Index rose by 0.5 percent and the German DAX Index jumped by 1 percent.

In the bond market, treasuries gave back ground after seeing initial strength, closing only slightly higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by less than a basis point to 0.620 percent after hitting a low of 0.602 percent.

Looking Ahead

Amid another quiet day on the U.S. economic front, reaction to the latest quarterly earnings news may drive trading on Tuesday.

IBM Corp. (IBM), Logitech (LOGI), Steel Dynamics (STLD), and Zions Bancorp (ZION) are among the companies releasing their quarterly results after the close of today's trading.

Coca-Cola (KO), Lockheed Martin (LMT), Novartis (NVS), Philip Morris (PM), and UBS AG (UBS) are also among the companies due to their results before the start of trading on Tuesday.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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