US STOCKS-Nasdaq rallies with Nvidia, tech shares; investors look toward Jackson Hole

VMware

21/08/2023 21:33

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      GS weighs sale of part of wealth business
    

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      Palo Alto Networks jumps on upbeat forecast
    

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      Indexes: Dow down 0.1%, S&P 500 up 0.7%, Nasdaq up 1.6%
    

  
 (Updates close with volume, share moves)
    By Caroline Valetkevitch
       NEW YORK, Aug 21 (Reuters) - The Nasdaq ended more than
1% higher and the S&P 500 also rose on Monday, with shares of
Nvidia jumping as investors were optimistic ahead of its
earnings this week, and other technology-related stocks gaining.
    The Dow Jones industrial average ended slightly lower. 
    The yield on 10-year Treasury notes hit highs last seen
during the Great Financial Crisis in 2007 as investors looked
warily toward a meeting of central bankers who convene on
Thursday at Jackson Hole in Wyoming. Federal Reserve Chair
Jerome Powell is due to speak on Friday.
    The technology sector  .SPLRCT  gave the biggest boost to
the S&P 500 and Nasdaq, while an index of semiconductors  .SOX 
advanced 2.8%. 
    Nvidia  NVDA.O  rose 8.5%, leading gains among semiconductor
stocks, as HSBC raised its price target on the stock to $780,
the second highest on Wall Street. 
    Nvidia, one of the biggest winners in this year's artificial
intelligence tech stock rally, is expected to forecast quarterly
revenue above analysts' estimates when it reports late on
Wednesday. Nvidia's stock is up more than 220% for the year so
far, while the Nasdaq is up 29%.
    "Nvidia is considered the brand for AI," said Quincy Krosby,
chief global strategist at LPL Financial in Charlotte, North
Carolina. "Their targets have been lifted dramatically, so the
question is, can they deliver... A catalyst coming in with
Nvidia would be extremely helpful."
    At the same time, she said, investors are anxious to hear
Powell's comments at Jackson Hole. Concerns the Fed will keep
interest rates higher for longer have pushed up U.S. Treasury
yields, and fanned worries about the impact of higher rates on
businesses and consumers.
    The Dow Jones Industrial Average  .DJI  fell 36.97 points,
or 0.11%, to 34,463.69, the S&P 500  .SPX  gained 30.06 points,
or 0.69%, to 4,399.77 and the Nasdaq Composite  .IXIC  added
206.81 points, or 1.56%, to 13,497.59.
    Among decliners in the Dow, Johnson & Johnson  JNJ.N  shares
fell 3% after the healthcare conglomerate said it was expecting
to retain a stake of about 9.5% in its newly separated consumer
health unit, Kenvue  KVUE.N .
    Goldman Sachs Group's stock  GS.N  dipped 0.9% after the
bank said it was weighing the sale of a part of its wealth
business.
    Also in the tech space, Palo Alto Networks  PANW.O  surged
14.8% after the cybersecurity firm alleviated worries about its
late Friday release of results with a strong quarter and a
forecast for annual billings above expectations.
    And VMware  VMW.N  jumped 4.9% after UK's competition
regulator cleared Broadcom's  AVGO.O  purchase of the cloud
computing firm. Broadcom's stock gained 4.8%.
        Volume on U.S. exchanges was 9.75 billion shares,
compared with the 10.99 billion average for the full session
over the last 20 trading days.
  
    Declining issues outnumbered advancing ones on the NYSE by a
1.44-to-1 ratio; on Nasdaq, a 1.08-to-1 ratio favored decliners.
        The S&P 500 posted 3 new 52-week highs and 18 new lows;
the Nasdaq Composite recorded 36 new highs and 214 new lows.    
 
  

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The Jackson Hole effect The Jackson Hole effect    https://tmsnrt.rs/447x79j
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 (Reporting by Caroline Valetkevitch; additional reporting by
Amruta Khandekar and Shristi Achar; Editing by Arun Koyyur,
Vinay Dwivedi and David Gregorio)
 ((caroline.valetkevitch@thomsonreuters.com))