Stock Market Updates: S&P 500 and Nasdaq Reach New Record Highs
The S&P 500 and Nasdaq Composite achieved new record closes on Monday, marking a positive start to the week for the stock market. The S&P 500 rose by 0.26% to close at 5,360.79, while the Nasdaq added 0.35% and settled at 17,192.53. The Dow Jones Industrial Average also saw gains, rising by 0.18% and finishing at 38,868.04.
Investors had anticipated a broader market rally in 2024, with small-cap stocks taking the spotlight from larger companies. However, Raymond James reported that the market has become even more narrow, with the S&P 500 hitting all-time highs while small and mid-cap indexes lag behind.
Eli Lilly shares surged to a fresh 52-week high after an FDA panel endorsed the effectiveness of its Alzheimer’s drug, donanemab. The stock gained about 48% year-to-date, reflecting positive investor sentiment following the panel’s recommendation.
UBS stated that despite a strong May jobs report, rate hikes are unlikely in the near future. The bank is still projecting two rate cuts this year, starting in September, as other economic indicators suggest a slowdown in the economy.
Meanwhile, California pension fund CalSTRS announced its opposition to Elon Musk’s pay package at Tesla, citing concerns over the excessive compensation relative to the average worker pay. The fund’s decision adds to growing shareholder dissent over the proposed pay package.
Apple shares dipped by 2% as the company unveiled its artificial intelligence plans, including systemwide proofreading for apps and generative AI photo capabilities. The company’s stock has historically struggled on days when CEO Tim Cook delivers keynote speeches, with shares falling in eight of the past 10 keynote days.
In other news, Edgar Bronfman Jr. and Bain Capital have reportedly made a bid for Paramount Global, while the iShares MSCI France ETF experienced its worst day in nearly a year. Natural gas prices hit their highest level since January due to lower production and a summer heat wave.
Overall, the stock market showed resilience and positive momentum on Monday, with various factors influencing different sectors and individual companies. Investors will continue to monitor developments in the market as economic conditions evolve.