The Nasdaq composite led the stock market in early trading Monday thanks to a good start for technology stocks, but other indexes reversed lower.
The Nasdaq was up 0.7% and knocking out fresh record highs after about 45 minutes of trading Monday. Technology Select Sector SPDR (XLK) jumped 1% to a new high, as semiconductors were especially heated. VanEck Vectors Semiconductor ETF (SMH) rallied 1.5%. Chip leaders such as Nvidia (NVDA), Applied Materials (AMAT) and ASML (ASML) (all three in IBD Leaderboard) rose 1% to 2%. After a strong open, chip stocks reduced gains.
The S&P 500 erased early gains, turned briefly lower and was flat at 10:13 a.m. ET as the energy sector appeared to hamper the index. Energy Select Sector SPDR (XLE) slumped 3.5%, erasing all gains since June 21.
The price of U.S. crude fell less than 1% to $73.41 a barrel, which didn’t seem to justify the tumble in energy stocks. Traders may be apprehensive ahead of technical meetings Tuesday and Wednesday by major oil producers to review the oil market. Official meetings of OPEC and the OPEC+ group are set for later this week.
U.S. Stock Market Today Overview
Last Update: 10:16 AM ET 6/28/2021
The Dow Jones Industrial Average faded to a 0.4% loss. Boeing (BA) was the biggest drag on the Dow. The aerospace company’s shares stumbled 2.5% after a report said certification of the new 777X jetliner is delayed until 2023 after the FAA cited safety concerns. Boeing stock is trying to hold above the 50-day moving average.
Small Caps Reverse Lower In Stock Market
The Russell 2000 small-cap index was down more than 0.4%.
Volume was modestly higher on the Nasdaq and NYSE compared with the same time on Friday. Advancers and decliners were nearly even on the Nasdaq, but losers were 12-7 over winners on the NYSE, reflecting the weaker S&P 500 this morning.
The Nasdaq has closed above 14,000 since June 10, and has narrowed its gap with the leading S&P 500 for year-to-date performance as growth stocks perform better this month.
Indexes just finished a productive week. The S&P 500 last week climbed 2.7%, the most since the first week in February. The Nasdaq added 2.4% as both main indexes reached record highs. The Dow rose 3.4% for the week. The Russell 2000 added 4.3%, beating the other indexes and marking its best week since March.
The 10-year Treasury yield fell about 4 basis points to 1.49%, which may be helping tech stocks. The lower yields hit financials. The Financial Select Sector SPDR was off 0.8%.
The economic calendar is light for Monday, but on Friday the Labor Department will release the jobs report for June. Economists expect, on average, 675,000 new jobs and an unemployment rate of 5.7%, according to Econoday.
Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia
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