US stocks wavered on Monday, putting a record-setting rally on pause as investors brace for a week filled with key events that could test equity gains. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all showed mixed movements, reflecting the uncertainty in the market.
The recent surge in tech stocks, driven by AI advancements, has propelled the Nasdaq Composite to a new all-time high. However, concerns about a potential bubble, especially with Nvidia’s rapid rise to a $2 trillion valuation, have started to emerge among analysts.
In addition to the tech rally, other significant developments on Monday included bitcoin’s climb above $67,000 and Japan’s Nikkei 225 surpassing the 40,000 level for the first time. These milestones indicate the ongoing volatility and excitement in the financial markets.
Looking ahead, Federal Reserve Chair Jerome Powell’s upcoming testimony and the release of the February jobs report will be crucial in determining the future direction of the US economy. These events will influence decisions on interest rates and provide insights into whether the economy is heading towards a soft landing or stagflation.
Meanwhile, EU antitrust regulators fined Apple nearly $2 billion over App Store restrictions, leading to a 3% drop in Apple’s shares. On the other hand, Macy’s stock surged over 14% after a buyout offer was raised to $6.6 billion, while Spirit Airlines and JetBlue saw contrasting movements following the termination of their merger agreement.
Overall, the market remains volatile and unpredictable, with various factors at play that could impact investor sentiment and stock performance. Stay tuned for more updates as the week progresses.
