S&P 500, Nasdaq 100, Dow Jones: Indexes Mixed, Pressured by Weak Mega Tech Stocks

Highlights

• S&P 500 index historically performs well post-Easter week
• Megacap tech stocks experience mixed results in Monday’s trading
• Investors await release of key inflation data

Overview

On Monday, the S&P 500 index went up slightly, rising by 0.1% to 4,109.11. The Dow Jones Industrial Average also increased by 0.3% to 33,586.52 points. However, the Nasdaq Composite went down by 0.03% and closed at 12,084.36.

Tech stocks did not perform well, with Apple and Google-parent Alphabet shares falling by 1.6% and 1.83%, respectively. Tesla also experienced a drop of 0.3% after announcing that it would cut prices on some of its electric vehicles. On the other hand, shares of chipmakers such as Micron Technology rose by 8% after Samsung declared that it would decrease production to maintain prices.

Investors were looking forward to the release of key inflation data later in the week, which could affect the stock market’s direction. The ongoing concerns over rising inflation and higher interest rates have been causing fluctuations in the stock market, and investors are closely monitoring any developments that could indicate how the market might be impacted in the future.

Post-Easter Week Good for S&P 500, but Possibly Bumpy This Year

Data analyzed by Bespoke Investment Group shows that historically, the week after Easter has been good for the S&P 500 index. Between 1945 and 2022, the index has advanced by 0.54% on average during the post-Easter trading week, which is better than the median gain seen in any other week during that period.

The index tends to perform even better in post-Easter weeks when it has been up year-to-date. The index has ended almost three out of five post-Easter weeks trading up. However, investors should not expect a smooth ride as the S&P 500 has slid by an average of 0.18% in the next trading session after Easter since 1980. But the following trading session has historically been positive.

As this week marks the start of earnings season and the release of the latest economic data, investors will be closely monitoring how the market performs and whether historical trends hold up.

S&P 500 Tech Sector Stocks See Mixed Results on Monday

On Monday, some megacap technology stocks experienced activity in the stock market. Tesla shares fell by 0.30% following the announcement of its fifth price cut this year in the US. The move came as tougher US standards are set to decrease the $7,500 tax credit available for Tesla’s Model 3. Tesla also announced on Sunday that it plans to open a new Megafactory in Shanghai. It would be capable of producing 10,000 Megapacks per year.

Micron Technology’s shares rose by around 8% after its rival Samsung Electronics declared plans to cut memory chip production in the near future. Wall Street analysts believe that this could hasten a return to supply-demand balance and a potential recovery in the chipmaking sector. Western Digital also added about 8%.

Shares of major technology companies such as Apple, Google-parent Alphabet, and Microsoft were in the red during Monday’s trading session but slightly recovered from their earlier losses. Apple’s stock price closed down 1.6%, while Google-parent Alphabet lost 1.8%, and Microsoft decreased by approximately 0.8%.

Taiwan Semiconductor‘s shares declined by 1.35% on Monday after the company experienced a drop in monthly revenue for the first time in four years. Nevertheless, the stock is still up about 17% from the beginning of the year. Bank of America recently upgraded its price target on the company. Stating it is likely to benefit from investor interest in generative artificial intelligence.