T&G Market Recap: S&P 500 Notches Record Close with Late-Session Leap š
Stocks waver, Intel soars amid breakup speculation š¦
US stocks showed mixed movements on Tuesday, starting the holiday-shortened week with a cautious tone as the Federal Reserve's policies and President Trump's actions dominated market sentiment.
The S&P 500 (^GSPC) gained nearly 0.2%, closing at a record high of 6,126.54.
The Dow Jones (^DJI) edged into negative territory, while the Nasdaq Composite (^IXIC) closed just above the flatline.
Fed's Path and Trump's Tariffs Stir Market Caution šļø
Stocks were cautious following Monday's Presidents' Day holiday as investors digested the Federal Reserve's stance on rising inflation. Fed officials have signaled they are focused on keeping rates high to combat inflation, leaving rate cuts less certain.
10-year Treasury yield (^TNX) rose to 4.54%, signaling investor expectations for higher rates š°
Investors are awaiting the release of minutes from the Fed's January meeting on Wednesday at 2 p.m. ET to get more clarity š
Tech Stocks and Intel Lead the Charge š»
Despite mixed results, some stocks experienced big moves. Intel (INTC) led the way with a nearly 10% jump following speculation about a potential breakup deal.
Intel's stock soared after reports that Broadcom and TSMC were considering deals to split the chipmaker into two š„
Walgreens (WBA) also surged by more than 10% as M&A rumors swirled šØ
Super Micro Computer (SMCI), another AI-related stock, jumped by 16%, continuing its strong rally š§
Meta's Winning Streak in Jeopardy š
Meta's (META) stock took a hit, falling 3% and putting its 20-session winning streak at risk. Despite this, Meta has gained 17% in the last month and 22% year-to-date š.
Nike Soars with SKIMS Partnership š
Nike (NKE) gained 5% after announcing a new partnership with SKIMS, the shapewear brand by Kim Kardashian. The collaboration is expected to boost Nike's product offerings in training apparel, footwear, and accessories šļøāāļø.
The collaboration is seen as a step in the right direction by analysts, with long-term growth potential š”
Musk's Social Security Move Raises Alarm ā ļø
Elon Musk is taking on Social Security, with his latest venture involving access to sensitive data š§ . This has led to alarm bells ringing in Washington about the stability of the social safety net.
The White House is on high alert, with leadership changes after Musk's team gained access to key data š
Critics are calling it a "fishing expedition" that could put American citizens' information at risk ā ļø
S&P 500 Outperformance and AI Stocks š
The S&P 500 has seen 46% of its companies outperforming the index so far this year, a notable improvement from the past two years when the market was largely driven by just a few tech stocks š».
Meta and Nvidia are the only two Magnificent Seven stocks outperforming the index š
Palantir (PLTR) and Super Micro Computer (SMCI) have been the big winners in the AI sector, with Palantir seeing a 55% rise this year š§āš»
Dollar's Strength a Concern for Big Tech šµ
The US dollar's strength is putting pressure on Big Tech companies, especially those with significant overseas revenue š. For example, Apple (AAPL) generates 58% of its revenue abroad, and Meta (META) also has a large chunk of international sales š.
Amazon (AMZN) reported a $900M hit from the dollar's strength, signaling potential challenges ahead for US-based companies operating globally š
Homebuilders Feel the Pressure šļø
The National Association of Home Builders (NAHB) reported that builder confidence dropped to its lowest level in five months due to concerns over tariffs, high mortgage rates, and housing costs š .
The housing market index fell to 42, signaling pessimism about future conditions š
Builders are cutting prices and offering sales incentives in an attempt to stimulate demand šø
Global Trade and Risks Ahead š
Bank of America highlighted that global trade wars are now viewed as the biggest risk to market stability, with 42% of fund managers citing this as the main concern š¦.
Trade wars and the potential for a recessionary trade conflict are major risks for investors, while an AI bubble and inflation are also concerns š
In Summary š
The S&P 500 hits new highs š
Intel and Nike lead stock rallies šÆ
Homebuilders face a tougher outlook šļø
AI stocks continue to soar š
Watch for Fed minutes and global trade concerns š