Nasdaq gains as Nvidia pops ahead of earnings report


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The Nasdaq Composite snapped a four-day losing streak on Monday, even as Treasury yields reached levels not seen in over a decade.

The tech-heavy index gained 1.6 per cent to close at 13,497.59, its biggest one-day advance since July 28, when it rallied 1.9 per cent. The S&P 500 gained 0.69 per cent to close at 4,399.77. The Dow Jones Industrial Average fell 0.11 per cent to 34,463.69.

Palo Alto Networks rallied 14.5 per cent on stronger-than-expected earnings, and Nvidia popped 8.3 per cent ahead of its earnings report due Wednesday. Tesla and Meta climbed 7 per cent and 2.4 per cent, respectively. The S&P 500 tech sector gained 2.26 per cent on Monday.

Those moves came even as the benchmark 10-year Treasury note yield hit a high of 4.34 per cent, reaching its highest level since November 2007.

Yields, which rise when bond prices fall, are typically bad for tech and other growth stocks as they lessen the value of their promised future earnings.

That made the day’s tech gains notable.

Moving on, this week, investors are anticipating an address Friday morning from Federal Reserve Chair Jerome Powell at the central bank’s annual symposium at Jackson Hole, Wyoming.

Investors are worried he might hint at more interest rate hikes despite recent increases, impacting the economy and investments. The anticipation is high, but Goldman Sachs suggests Powell might not provide a clear signal.

Overall, US sectors were mixed overnight. Technology was the best performer as Nvidia saw gains ahead of its earnings results.

Lastly for today’s news, China is grappling with a worsening economic situation driven by a crisis in its debt-heavy property sector, leading to lowered growth forecasts by London banks, as concerns rise about deflation, high youth unemployment, and insufficient central bank measures to address the situation. 

Futures

The SPI futures are pointing to a 0.2 per cent gain.

Currency

One Australian dollar at 7:20 AM was buying 64.14 US cents.

Commodities

Gold added 0.34 per cent. Silver gained 2.60 per cent. Copper added 0.37 per cent. Oil fell 0.65 per cent.

Figures around the globe

European markets closed mixed. London’s FTSE fell 0.06 per cent, Frankfurt added 0.19 per cent, and Paris closed 0.47 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei added 0.37 per cent, Hong Kong’s Hang Seng dropped 1.82 per cent while China’s Shanghai Composite closed 1.24 per cent lower.

The Australian sharemarket closed 0.46 per cent lower at 7116.

Ex-dividends

Computershare (ASX:CPU) is paying 40 cents unfranked
Deterra (ASX:DRR) is paying 16.85 cents fully franked
GQG Partners (ASX:GQG) is paying 2.3547 cents unfranked
IPH (ASX:IPH) is paying 17.5 cents 35 per cent franked
Kelly Partners Group (ASX:KPG) is paying 0.4392 cents fully franked
Microequities (ASX:MAM) is paying 1.5 cents fully franked
Netwealth Group (ASX:NWL) is paying 13 cents fully franked

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

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