S&P 500, Dow Jones Hit Record Highs: AI Plays Help Lift Index

The S&P 500 added 0.8% on Monday, Oct. 14, 2024, as tech gains helped push the index to an all-time high. The Dow Jones Industrial Average rose more than 200 points. Shares of companies exposed to AI technology, including chipmaker Nvidia and electric utility Vistra, helped drive the strong performance.

On Monday, October 14, 2024, the S&P 500 rose by 0.8%, reaching a record high, driven by gains in the tech sector. Companies with ties to AI technology, such as chipmaker Nvidia and electric utility Vistra, contributed to the index's strong performance. Meanwhile, CrowdStrike shares dipped, erasing part of last week's gains after the cybersecurity company was highlighted as a top software pick.

The S&P 500 advanced 0.8% on Monday

On Monday, the S&P 500 rose by 0.8%, marking its second consecutive record close following an all-time high on Friday. The Dow gained 0.5%, closing above the 43,000 mark for the first time, while the Nasdaq increased by 0.9%.

Shares of power generator Vistra (VST) surged by 5.6%, achieving the best performance among S&P 500 constituents after BNP Paribas began coverage of the stock with an "outperform" rating. The bank also set a price target of $230 for Vistra shares, indicating a potential upside of approximately 74% from Monday's closing price. Last month, Vistra overtook Nvidia (NVDA) as the top performer in the S&P 500 for 2024, fueled by excitement over the company’s prospects for supplying nuclear-generated power to artificial intelligence (AI) data centers.

Tech stocks drove the day's gains, with chip giant Nvidia rising nearly 3% to a new high above $138 per share. Other semiconductor companies, including ASML (ASML), Arm Holdings (ARM), and Applied Materials (AMAT), also experienced significant increases.

The rally extended to the cryptocurrency market, with Bitcoin (BTC-USD) climbing over 5% in the past 24 hours, surpassing $65,700 per coin. Ethereum (ETH-USD) also enjoyed a strong day, gaining nearly 8%.

As the first full week of third-quarter earnings reports kicks off, investor focus shifts to these results. The outcome of the earnings season is expected to be crucial for the ongoing stock rally, marking the two-year anniversary of the bull market.

The Dow Jones went up 201.36 points

The Dow Jones Industrial Average went up 201.36 points or 0.47% to end at 43,065.22, a record close. It’s the index’s 37th record close of the year.

The broad index gained 0.61% to end at 5,815.03, while the Dow rallied 409.74 points, or 0.97%, to finish at 42,863.86. Both averages hit fresh all-time highs and closed at records. The Nasdaq Composite added 0.33% to finish at 18,342.94 and less than 2% below its all-time high.

“What we’re seeing — and I think you’re seeing it hit pretty hard today, in a good way — is a broadening of the market,” said Craig Sterling, head of U.S. equity research at Amundi US.

The major averages also registered a fifth straight week of gains. The S&P 500 and Nasdaq jumped 1.1% each, while the Dow toted a 1.2% gain.

Technology and Utility stocks rose on Monday, helping lift the Dow Jones Industrial Average (^DJI) up 0.3% and the S&P 500 (^GSPC) up 0.6%. Both major averages were on pace to close at a fresh record high.

The tech-heavy Nasdaq Composite (^IXIC) rose the most among the major averages, up 0.7%.

AI Plays Help Lift Index to Record Close

Amentum (AMTM) shares, which began trading last month after spinning off from Jacobs Solutions (J), rose by 5.5%. This increase on Monday followed Truist's initiation of coverage on Amentum, issuing a "buy" rating with a price target of $31, indicating potential upside of over 9% as the company may exceed its cost-savings projections.

In contrast, shares of discount retailer Dollar General (DG) fell by 3.3%, experiencing the largest decline in the S&P 500 on Monday. Heartland Advisors released a report identifying Dollar General as one of the poorest performers in its midcap value fund for the third quarter. Similarly, shares of competitor Dollar Tree (DLTR) closed down 3.1%.

Shares of CrowdStrike Holdings (CRWD) fell by 3%, reversing some of the strong gains the stock achieved last week after RBC Capital analysts named it one of their top picks in the software sector. The analysts noted that the cybersecurity firm is effectively managing the aftermath of a July incident in which a faulty software update led to significant tech outages. Despite this positive assessment, CrowdStrike still faces potential consequences from the incident. In its recent earnings report, Delta Air Lines (DAL) mentioned the adverse effects of the outage and stated that the airline is still pursuing compensation from the cybersecurity company.

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