The market rotation toward large-cap technology and AI-centric firms remains in focus, with investor sentiment buoyed by expectations for imminent monetary easing. All eyes are now on forthcoming inflation data and the FOMC’s rate decision later this week. Yes indeed, the U.S. equity markets closed at new record highs on Monday, as the S&P 500 advanced 0.47% to finish at 6,515.28 and Tesla (TSLA) stock roared back closing up 3.62% at $410.26 on Monday as it was widely reported that CEO Elon Musk made a rare open-market purchase of about $1 billion in Tesla stock, acquiring 2.57 million shares at prices between $372 and $396 last Friday. The Dow Jones Industrial Average also rose 0.11% to 45,883.45, and the Nasdaq Composite gained 0.94% to close at 22,348.75, each setting new closing records. The Russell 2000 rose .34% as small-cap names joined the party. Gains were broad, driven by strength in communication services, energy, and financials, while materials and industrials sectors weakened.
Macroeconomic and Policy Updates
There were no major U.S. economic data releases today, with market participants anticipating tomorrow’s Producer Price Index and Thursday’s Consumer Price Index reports. The only notable update came from a preliminary benchmark payrolls revision, revealing a downward adjustment of 911,000 jobs for the period March 2024–March 2025. FOMC rate cut expectations remain anchored on a 25-basis point reduction at Wednesday’s Fed meeting, with a minority of traders eyeing a possible 50-basis point cut.
Yield Curve and Interest Rates
The yield on the 2-year Treasury note closed at 3.547%, while the 10-year Treasury yield ended at 4.039%, with both moving lower.
Tariff and Trade News
Fresh developments in global trade included a framework deal reached between the U.S. and China over TikTok and a renewed push for higher tariffs, particularly by President Trump, who advocated 100% tariffs on major trading partners of Russia as leverage over the Ukraine conflict. Ongoing tariff threats have heightened market volatility and are expected to weigh on consumer prices in coming quarters.
Notable Company News
- Apple (AAPL): Shares rose 1.12% to $236.70 following last week’s annual product event, with investor scrutiny focused on the new iPhone 17 pricing. The iPhone Pro saw a price hike of $100 to $1,099, while the entry Air model was set at $999.
- Broadcom (AVGO): Traded 1.17% higher to $364.09 following string of recent AI-related deals.
- NVIDIA (NVDA): Ended modestly lower, down .04%, under pressure from ongoing Chinese regulatory scrutiny into its AI chip sales as Beijing announced further antitrust probes.
- Tesla (TSLA): Jumped 3.56% to $410.04 after hitting $429.63 today after CEO Elon Musk disclosed a large additional share purchase, his first significant buy in months, boosting the stock to its highest since January.
- Meta Platforms (META): Rose 1.21% to $764.70; the company announced a new partnership with AI image startup Black Forest Labs, highlighting an ongoing push into AI tools and products.
Mergers, Acquisitions, and IPOs
No major S&P 500 constituent mergers, acquisitions, or buyouts were announced today, though the market digested last week’s $53 billion Anglo-Teck tie-up, expected to spur further activity in the metals sector. The IPO calendar was busy, with the high-profile StubHub Holdings IPO targeting nearly $800 million, and a total of $2.36 billion raised across multiple NYSE and Nasdaq offerings this week.
Commodities and Crypto
- Gold: Closed at $3,720.90/oz, up .94 amid ongoing expectations for Fed easing. The SPDR Gold Shares ETF rose 1.04% to $338.91.
- Silver: Settled at $43.180/oz, +.82%.
- Oil: Closed at $63.34, +1.04%.
- Bitcoin: Traded near $115,745.
