Traders work on the floor of the New York Stock Exchange during morning trading on May 17, 2024 in New York City.
Angela Weiss | AFP | Getty Images
U.S. stocks were little changed on Monday, after the Dow Jones Industrial Average closed above the key 40,000 level for the first time last week.
The 30-stock average declined 45 points, or 0.1%. Meanwhile, the S&P 500 and Nasdaq Composite added 0.2% and 0.4%, respectively.
The Dow first hit the 40,000 level during Thursday’s trading session, but posted its first close over the threshold a day later when it added 134.21 points, or 0.3%, to end Friday at 40,003.59.
This market rally should continue at least in the short term, according to Tom Lee, head of research at Fundstrat Global Advisors.
“As we stated earlier this month, we expected markets to shift from ‘fear of May’ to buy in May; and as each week has passed, this has been the case. Looking into next week, we expect this to continue,” he wrote in an email.
Artificial intelligence names are due to steal the spotlight this upcoming week. Investors will be keeping a close eye on Nvidia’s fiscal first-quarter results due Wednesday afternoon to gauge the strength of the AI-led rally.
Nvidia shares gained more than 2% on multiple bullish analyst calls which highlighted the company’s preeminent market position. Several Wall Street firms also increased their price target on the chipmaker ahead of its earnings report, suggesting shares could gain as much as 30% from their current levels.
The stock is up 91.5% in 2024 alone and is 203.2% higher over the last 12 months. Nvidia’s market cap is now the third-largest in the S&P 500 at $2.3 trillion, giving it an expected move of approximately 8% — indicating the quarterly results could result in broader market movement.
Nvidia shares in the past year
Palo Alto Networks, AutoZone, Target, Analog Devices, Intuit and Ralph Lauren will also post their results in the upcoming days.
The minutes from the Federal Reserve’s April 30 to May 1 meeting are due Wednesday. Investors will also watch out for the latest readings on several pieces of economic data including existing home sales, jobless claims and durable goods orders.