NASDAQ 100, Dow Jones, S&P 500 News: Tesla, Tech Giants Lead on AI Hopes

Highlights

• Tesla rises 10% on Morgan Stanley’s upgrade.
• Disney, Charter ink deal before NFL season.
• Investors await key August inflation data.

A Surge in Tech Titans

The Nasdaq witnessed an impressive uptick on Monday, with Tesla leading the charge as AI developments and forthcoming inflation data captivated investors. Tesla’s stock skyrocketed by 10%, following Morgan Stanley’s upgrade from “equal-weight” to “overweight.” The rationale? Tesla’s Dojo supercomputer, which the financial giant believes could potentially amplify the automaker’s market valuation by an astonishing $600 billion.

Meanwhile, other tech behemoths also enjoyed the bullish sentiment: Amazon ascended by 3.5%, and Microsoft registered a 1.1% gain. Not to be left out, Meta Platforms experienced a 3.25% leap, thanks to buzz surrounding its next-gen AI system.

Media Majors Making Moves

Walt Disney and Charter Communications experienced lifts of 1.2% and 3.2% respectively. This bounce came after an agreement was inked, ensuring Disney’s rich suite of programming—including the crowd-favorite ESPN—would grace the Spectrum cable network, perfectly timed before NFL’s “Monday Night Football.”

Anticipating Inflation Insights

Investor eyes are now firmly fixed on the impending August consumer price index, eager for hints about the Federal Reserve’s next move concerning interest rate strategies. The New York Fed’s survey suggests that Americans’ inflation perceptions remained stable in August. However, many are optimistic, predicting that the imminent CPI and PPI readings might align with a more moderated outlook. This could potentially sway the Fed away from further rate hikes, a sentiment buoyed by Wall Street’s predictions— a 93% likelihood of interest rates remaining unchanged in September.

Market Snapshots

Despite the buzz, Wall Street had to grapple with losses the previous Friday due to an unexpected surge in oil prices and economic data. The situation led to increased anxieties over lingering inflation and prolonged elevated interest rates. However, Monday painted a brighter picture: S&P 500 rose by 0.67%, Nasdaq by 1.14%, and Dow Jones by 0.25%. Though trading volume was slightly subdued, nine out of the eleven S&P 500 sectors experienced growth, with consumer discretionary and communication services leading.

Notable Deals & Highlights

In other notable developments, Qualcomm inked a deal with Apple to provision 5G chips until at least 2026, causing its stock to rise 3.9%. Hostess Brands, on the other hand, soared by 19.1% after J. M. Smucker announced its acquisition intentions for a whopping $5.6 billion.

Short-Term Forecast

While the tech and media sectors relished the spotlight, investors remain cautious, awaiting key economic indicators. The overall sentiment leans positive, but the looming Federal Reserve announcement and international economic factors could bring surprises.