Stocks moved higher in early trading Monday as the market looks to resume a rally that has boosted major indexes to a series of record highs in recent weeks.
The S&P 500 (SPX) and the tech-heavy Nasdaq Composite (IXIC) were recently up 0.3% and 0.7%, respectively, while the Dow Jones Industrial Average (DJI) slipped 0.1%. Stocks finished slightly lower on Friday after each of the major indexes hit all-time highs early in the session following the release of the August jobs report.
The employment data, which showed that the U.S. labor market has continued to weaken, reinforced investor expectations that the Federal Reserve will start cutting interest rates soon. Fed Chair Jerome Powell last month signaled that labor market weakness could warrant a rate cut, though he reiterated concerns about the impact tariffs could have on inflation. Key inflation data this week—a report on wholesale prices is due on Wednesday and consumer price numbers are coming Thursday—will be closely monitored ahead of the Fed’s policy committee meeting next week.
The yield on the 10-year Treasury, which affects borrowing costs on all sorts of consumer loans, was at 4.05% this morning, down from 4.09% at Friday’s close. The yield is trading at its lowest level since early April as anticipation grows that the Fed will cut rates several times before the end of the year.
Shares of the world’s largest technology companies, which have an outsized influence on the broader market, were mostly higher. Shares of chip giant Broadcom (AVGO) climbed 4%, after surging 9% on Friday following the release of a strong earnings report. Rival Nvidia (NVDA) added 2%, while Microsoft (MSFT), Alphabet (GOOG) and Meta Platforms (META) each gained more than 1%. Shares of Amazon (AMZN) and Tesla (TSLA) rose slightly, while Apple (AAPL) ticked lower.
Trading platform Robinhood Markets (HOOD) and mobile app monetization company AppLovin (APP) each jumped about 13% following the announcement late Friday that the two companies will join the S&P 500 on Sep. 22.
Gold prices, which have been trading at all-time highs recently, hit another record this morning. Gold futures were up 0.3% at $3,665 an ounce.
West Texas Intermediate futures, the U.S. crude oil benchmark, rose 1.1% to $62.55, rebounding from three consecutive days of declines that had pushed prices to their lowest level in three months.
Bitcoin was at $112,200 recently, up from an overnight low of $110,600. The cryptocurrency has come under pressure in recent weeks after hitting a record high of more than $124,000 in mid-August.
The U.S. dollar index, which tracks the performance of the U.S. dollar against a basket of foreign currencies, slipped 0.2% to 97.53.
Robinhood, AppLovin Soar on News of S&P 500 Inclusion
19 minutes ago
Three new companies will join the S&P 500 later this month.
Trading platform Robinhood Markets (HOOD) and mobile app monetization company AppLovin (APP) are set to join the benchmark index on Sept. 22, according to S&P Dow Jones Indices, part of a quarterly rebalancing.
They will replace Caesar’s Entertainment (CZR) and MarketAxess Holdings (MKTX), respectively. Emcor (EME), meanwhile, will take the place Enphase Energy (ENPH).
Shares of Robinhood and AppLovin were each up about 13% in early trading Monday, while Emcor shares inched higher.
Leading up to the decision, investors engaged in a favored niche pastime: trying to guess—and, perhaps, trade ahead of the news—what the picks might be. Robinhood and and Applovin were popular suggestions; so was bitcoin treasury company Strategy (MSTR), which didn’t make the cut.
S&P Dow Jones Indices has in recent months changed companies both for company-specific business reasons—in August, for example, it tapped Interactive Brokers (IBKR) to replace Walgreens Boots Alliance (WBA) with the latter set to be taken private later this year, while Block (XYZ) joined earlier this summer after Hess was acquired—and as part of its periodic rebalancing efforts.
The S&P 500 rebalancing process takes place quarterly—in March, June, September and December—though no changes were announced in June.
Stocks of companies included in the S&P 500 can benefit because it exposes them to a wider group of investors who could become aware of them through an index. In addition, they can be added to various index funds that track stocks that are part of the S&P 500.
Caesar’s, Enphase and MarketAxess will join the S&P SmallCap 600, S&P Dow Jones Indices said.
Major Index Futures Point to Slightly Higher Open
1 hr 37 min ago
Futures tied to the Dow Jones Industrial Average were up 0.1%.
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S&P 500 futures rose 0.2%.
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Nasdaq 100 futures added 0.3%.
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