US stocks took a breather on Monday after a record-setting rally, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all slipping slightly. Investors are now turning their attention to Federal Reserve Chair Jerome Powell’s upcoming testimony and the release of the monthly jobs report, which could test the recent equity gains.
The tech sector, driven by AI advancements, has been a major contributor to the market surge, with the Nasdaq Composite finally reaching a new all-time high. However, concerns about a potential bubble, especially with Nvidia’s rapid rise to a $2 trillion valuation, have started to emerge.
In other news, bitcoin continued its climb, surpassing $65,000, while Japan’s Nikkei 225 stock index breached the key 40,000 level for the first time. The upcoming testimony from Powell and the release of the February jobs data will provide insight into the future direction of interest rates and the overall health of the US economy.
On the regulatory front, EU antitrust regulators fined Apple nearly $2 billion over App Store restrictions, causing a 3% drop in Apple’s shares. Meanwhile, Macy’s stock surged over 14% after a buyout offer was raised to $6.6 billion, and Spirit Airlines shares fell more than 12% following the termination of a merger agreement with JetBlue.
As the market continues to navigate these developments, Super Micro Computer saw its shares jump 18% as the AI server maker made its entry on the S&P 500. The coming days will be crucial as investors assess the impact of these events on the market’s momentum.
