Nvidia Powers Tech Recovery Amid Economic Concerns
The Dow closed higher on Monday, as weaknesses in banks were offset by renewed interest in technology, notably the surge in Nvidia (NASDAQ: NVDA), ahead of incoming economic data expected to shed light on the consumer. Nvidia's gain was a highlight, rising more than 7% on Morgan Stanley's recommendation to buy after a recent dip in the chipmaker's value.
Treasury Yield and Consumer Resilience
The U.S. 10-year Treasury yield touched 4.204% but retracted as investors anticipated the latest consumer data due Tuesday. With retail sales for July expected to underscore a robust U.S. consumer - constituting about 70% of economic growth - signs point to a dampening in expectations that the Federal Reserve will resume rate hikes later this year.
US Steel's Rejection and PayPal's New CEO
United States Steel Corporation (NYSE:X) jumped more than 36% after rejecting a $7 billion buyout offer from Cleveland-Cliffs Inc (NYSE: CLF), opting to review strategic options instead. In other news, PayPal Holdings (NASDAQ: PYPL) named Intuit’s Alex Chriss as the new CEO, marking an essential change to align with the company's refocus on merchant and consumer platforms.
Tesla's Challenges and Price War in EV Market
Tesla's announcement to cut prices for Model Y in China led to a 1% fall in shares and stirred concerns over a potential price war in the EV market. The decision also weighed on other EV makers like Rivian Automotive Inc (NASDAQ: RIVN) and Nikola (NASDAQ: NKLA), with Nikola pausing sales of its EVs following battery fires and subsequent recalls.
Financials Under Pressure; Walmart's Mixed Outlook
Pressure on financial stocks continued with regional bank shares such as Citizens Financial Group Inc (NYSE: CFG), Fifth Third Bancorp (NASDAQ: FITB), and KeyCorp (NYSE: KEY) struggling amid Moody's recent downgrades. Walmart Inc (NYSE: WMT) added to the broader market's weight, even as Oppenheimer expressed optimism for Q2 results, predicting another beat and guidance raise due to an improving business mix and digital success.