Wall Street’s main stock indexes closed higher on Monday as investors awaited new economic data and comments from Federal Reserve officials for further clarity on monetary policy.
Big names Apple and Microsoft rebounded from early losses to rise, while artificial intelligence chip maker Nvidia fell from an all-time high.
Other semiconductor stocks rose, helping push the Philadelphia SE Semiconductor Index to a record high for a time. Shares of Broadcom Inc. and U.S.-listed Taiwan Semiconductor Manufacturing Co. both rose, while Micron Technology Inc. rose after brokers raised their price targets.
Among the S&P 500’s 11 sector index, technology and consumer discretionary posted the biggest gains, while real estate and utilities led the declines.
“The hope is that lower interest rates will have an impact going forward, lowering housing costs and potentially helping consumers,” said J. Bryant Evans, investment adviser and portfolio manager at Cozad Asset Management in Champaign, Illinois.
Goldman Sachs raised its target for the S&P 500 index to 5,600 from 5,200 by the end of 2024, while Evercore ISI raised its forecast for the index to 6,000 from 4,750.
Both brokerages cited their technology strengths and enthusiasm for AI as the reason for the upgrade.
The tech-heavy Nasdaq and S&P 500 hit multiple all-time highs last week.
Philadelphia Federal Reserve Bank President Patrick Harker said Monday that the Fed could cut interest rates once this year if his economic forecasts come true.
New York Fed President John Williams and Fed Governor Lisa Cook are scheduled to speak later Monday.
Economic data for the week included retail sales data for May due to be released on Tuesday, followed by industrial production, housing starts and preliminary S&P purchasing managers’ indexes.
The market is closed on Wednesday in observance of the Juneteenth holiday.
The Federal Reserve on Wednesday kept interest rates unchanged and delayed the start of rate cuts until possibly December.
But markets still expect around two 25 basis point rate cuts this year, according to LSEG data, while CME’s FedWatch tool still sees easing starting from the September meeting.
In preliminary data, the S&P 500 rose 41.80 points, or 0.77%, to 5,473.40, the Nasdaq Composite rose 167.44 points, or 0.95%, to 17,856.33 and the Dow Jones Industrial Average rose 190.50 points, or 0.49%, to 38,779.66.
Autodesk shares soared after it was reported that activist investor Starboard Value had bought about $500 million worth of the company’s stock.
