The Nasdaq Composite closed at a new record high on Monday, driven by significant gains in Nvidia and other prominent tech stocks. This rise comes amidst a mixed performance in the broader market, with the S&P 500 inching upward while the Dow Jones Industrial Average lagged behind. The tech-heavy Nasdaq’s rise brought it to an all-time intraday high, highlighting investor enthusiasm for artificial intelligence (AI) and technology sectors. Meanwhile, the Dow Jones faced pressure from a notable decline in JPMorgan Chase shares, influenced by CEO Jamie Dimon’s comments on his potential early retirement and the bank’s decision against share repurchases. This market dynamic highlights the ongoing optimism around AI and tech advancements, even as broader economic and geopolitical risks persist.

Key Takeaways:

  • Nasdaq Reaches Record High while S&P 500 Edges Up: The Nasdaq Composite rose 0.65% to close at a record level of 16,794.87, driven by a 2% increase in Nvidia shares. This marks an all-time intraday high for the tech-heavy index. The S&P 500 inched up 0.09% to 5,308.13, continuing its upward trend despite mixed performances across various sectors.
  • Dow Jones Falls on JPMorgan Decline: The Dow Jones Industrial Average fell 196.82 points, or 0.49%, to 39,806.77, impacted by a 4.5% drop in JPMorgan Chase shares after their CEO hinted at an earlier-than-expected retirement and announced a halt on share repurchases.
  • European Markets Close Slightly Higher: The Stoxx 600 index rose 0.2%, with industrials up 0.96% and autos down 0.77%. The FTSE 100 Index gained 3.94 points, or 0.05%, to 8,424.20. Swiss luxury goods group Richemont surged 5.3% on positive analyst updates.
  • Asian Markets Rally with China Leading: Mainland China’s CSI300 index gained 0.35% to 3,690.96, while Japan’s Nikkei 225 climbed 0.73% to 39,069.68. The broader Topix index also rose 0.82% to 2,768.04. South Korea’s Kospi increased by 0.64% to 2,742.14.
  • Thailand’s Economy Grows Faster Than Expected: Thailand’s GDP grew by 1.5% year-on-year in Q1, surpassing expectations of 0.8%. The economy expanded 1.1% on a seasonally adjusted quarter-on-quarter basis, driven by robust export services and private consumption.
  • UK Stocks Outperform US Counterparts: The FTSE 100 has risen approximately 11% over the last three months, while the FTSE 250 is up over 9%, compared to a 6% increase in the S&P 500 over the same period.
  • Microsoft Unveils AI-Ready PCs: Microsoft announced new AI-capable Surface devices featuring Qualcomm chips designed for extended battery life and enhanced AI functionalities, available for pre-order starting at $999.
  • Oil Prices Decline Amid Iranian Developments: West Texas Intermediate crude futures fell 0.61% to $79.57 a barrel, and Brent crude futures dropped 0.55% to $83.52 a barrel following the death of Iran’s President and Foreign Minister in a helicopter crash.
  • Bitcoin Surges to New High: Bitcoin rose 5.93% to $70,206, marking an 82.3% increase from its yearly low and reaching its highest level since April 2024. The cryptocurrency is up 82.3% from its January low of $38,505 and 18.41% month-to-date, highlighting renewed investor interest.

FX Today:

  • EUR/USD Edges Down Amid ECB Rate Cut Speculation: The EUR/USD pair fell 0.05% to 1.0863 as the dollar gained strength. The pair fluctuated amid uncertainty over potential ECB rate cuts next month, while hawkish comments from an ECB Governing Council member provided limited support. The 20-day and 50-day EMAs around 1.0780 signal a bullish outlook, with the 14-period RSI comfortably in the 60.00-80.00 range.
  • GBP/USD Pushes Above 1.2700: The GBP/USD pair rose 0.07% to 1.2711, touching a two-month high of 1.2725 ahead of the UK inflation report due on Wednesday. For continued bullish momentum, the pair must stay above 1.2700, with resistance levels at the March 21 cycle high of 1.2803 and the YTD high of 1.2893. A drop below 1.2700 could lead to a retest of the 100-DMA at 1.2634 and further support at the 200-DMA at 1.2539.
  • USD/JPY Eyes 157.00: The USD/JPY pair climbed 0.38% to 157.00 after bouncing off a daily low of 155.49. Clearing the May 14 high of 156.76 is crucial for a bullish continuation towards the MTD high of 157.99 and the YTD high of 160.32. Support lies at 156.25, with additional support at 153.61 and 153.25.
  • USD/CAD Remains Range-Bound: The USD/CAD pair traded between 1.3640 and 1.3600, constrained by the 200-hour EMA at 1.3646. The 50-day and 200-day EMAs at 1.3635 and 1.3548, respectively, indicate a tight trading range. The 1.3600 level acts as a key technical barrier, influencing both bullish momentum and downside pressure.
  • Gold Reaches Record High Amid Bullish Momentum: Gold prices surged to a new all-time high of $2,450, signalling strong momentum. Should XAU/USD break past this record, the next targets are $2,475 and then $2,500. On the downside, a fall below $2,400 could see support at $2,332, followed by $2,303. Further declines could bring the 50-day Simple Moving Average (SMA) at $2,284 into play, potentially stabilising prices.

Market Movers:

  • Wix.com Jumps on Strong Earnings: Wix.com saw its stock rise 23.8% after reporting better-than-expected first-quarter results and raising its full-year free cash flow guidance.
  • Hims & Hers Health Surges on New Product Launch: Hims & Hers Health shares jumped 27.7% following the introduction of compounded GLP-1 injections, expanding its weight loss program initiated in December.
  • Norwegian Cruise Line Boosted by Positive Outlook: Norwegian Cruise Line shares climbed 7.6% after the company raised its full-year earnings guidance and reported strong first-quarter results.
  • Target Declines on Price Cut Announcement: Target’s stock fell 2.1% after announcing price cuts on approximately 5,000 frequently purchased goods to attract consumers facing higher prices.
  • Li Auto Tumbles on Weak Earnings: Li Auto shares dropped 12.8% following weaker-than-expected first-quarter earnings and soft guidance for current-quarter revenue.
  • Teradyne Rises on Upgrade: Teradyne shares increased 5.8% after Goldman Sachs upgraded the stock to “buy,” citing a cyclical recovery in its system-on-chip design test business.
  • GameStop Gains Amid Meme Stock Resurgence: GameStop shares rose 4.2% as the stock experienced renewed interest following last week’s volatile trading.
  • Micron Technology Advances on Upgrade: Micron Technology shares went up 3% after Morgan Stanley upgraded the stock to “equal weight” from “underweight,” acknowledging AI-related memory demand.
  • Hasbro Upgraded and Gains: Hasbro shares increased 3.2% after Morgan Stanley identified the stock as a top pick, noting its recent underperformance as an attractive entry point.
  • Johnson Controls Climbs on Activist Stake: Johnson Controls shares rose 2.3% after Bloomberg News reported that Elliott Management had acquired a stake worth more than $1 billion in the company.
  • Nvidia Up Ahead of Earnings: Nvidia shares added 2.5% following several analyst upgrades and increased price targets ahead of its quarterly earnings report later this week.
  • Microsoft Gains Pre-Build Conference: Microsoft shares increased 1.2% ahead of its Build developer conference, which starts on Tuesday.
  • Dell Technologies Dips During Event: Dell Technologies shares fell 2.7% as the company held its developer event.
  • NextDecade Jumps on UAE Investment: NextDecade shares surged 14.8% after the UAE’s state-owned oil company acquired an 11.7% stake in its Rio Grande LNG export project.
  • NuScale Power Advances on Uranium Ban: NuScale Power shares rose 14.9%, driven by recent gains in uranium stocks following the US President ban on Russian uranium imports. The stock is up more than 100% year-to-date.

As the trading session wraps up, the Nasdaq Composite’s new record high underscores the ongoing enthusiasm for tech stocks, particularly Nvidia, which continues to lead the AI-driven rally. Despite mixed performances from the Dow and S&P 500, investors remain optimistic about the market’s growth potential, driven by favourable economic indicators and strategic corporate developments. European markets showed resilience, while Asian markets benefitted from stable lending rates and positive economic data. In the forex market, the dollar edged higher as traders awaited further guidance from the Federal Reserve. The market remains vibrant, reflecting a cautious yet hopeful sentiment as investors navigate the complexities of the global economic landscape.