U.S. Stocks Drift Toward More Records in Quiet Trading
NEW YORK (AP) — U.S. stocks are inching closer to setting new records in a quiet trading session on Monday, signaling a potential positive start to the holiday-shortened week.
The S&P 500 was up 0.2% in midday trading, on track to close above its all-time high set just last Thursday. The Dow Jones Industrial Average also saw a slight increase of 12 points, while the Nasdaq composite was adding 0.1% to its own record.
One of the standout performers in the market was Autodesk, which surged 4.5% after an investment firm announced plans to delay the software company’s annual meeting in order to nominate new directors for the board. This move comes after Starboard Value criticized Autodesk for underperforming financially. In response, Autodesk stated that it will review Starboard’s suggestions but affirmed that its current strategy is effective.
Chip company Broadcom also saw a significant rise of 3.4% following better-than-expected profit reports and the announcement of a 10-for-one stock split to make its shares more affordable. This move mirrored Nvidia’s recent stock split, which has been well-received by investors.
The positive momentum in the market was driven by strong performances from Apple, up 1.8%, and Tesla, up 4.5%. However, rising Treasury yields in the bond market posed a challenge, erasing some gains made last week after positive inflation reports raised hopes for a potential interest rate cut by the Federal Reserve.
Looking ahead, the economic calendar for the U.S. this week is relatively light, with key reports on retail spending and business activity scheduled for Tuesday and Friday, respectively. Additionally, markets will be closed on Wednesday for the Juneteenth holiday.
In international markets, European indexes rebounded slightly after a tumultuous week, with France’s CAC 40 rising 0.9%. However, Asian markets saw losses, with Japan’s Nikkei 225 dropping 1.8%.
Overall, the U.S. stock market is showing resilience in the face of economic uncertainties, with investors closely monitoring developments in interest rates and global trade tensions.
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AP Business Writer Elaine Kurtenbach contributed to this report.
