Dow Jones Briefly Sets Record Highs, Tech Drops, Chipmakers Tumble As Oil Prices Spike On Geopolitical Risks: What's Driving Markets Monday?

Author: Piero Cingari | August 26, 2024 01:30pm

It's a mixed start to the week on Wall Street, with technology stocks dragging down the Nasdaq 100 and S&P 500 indices, while blue-chip stocks in the Dow Jones Industrial Average reached new all-time highs during the morning session in New York as traders weighed the latest surge in global geopolitical risks.

Oil prices surged by 3% due to escalating tensions in the Middle East between Israel and Hezbollah, coupled with supply disruptions in Libya, where a government faction halted oil production.

The Dow reached 41,420 points around 10:30 a.m. E.T., marking fresh record highs before retreating slightly and advancing by only 0.1% by midday trading in New York. Small caps managed to book modest gains, with the Russell 2000 up 0.3%.

Semiconductors were the weakest segment within the broader tech sector, with the iShares Semiconductor ETF (NYSE:SOXX) dropping 2.3%, ahead of NVIDIA Corp.'s (NASDAQ:NVDA) highly anticipated earnings report, scheduled for release on Wednesday after the close.

Treasury yields remained broadly steady, while the U.S. dollar attracted some safe-haven demand, gaining ground against all major currencies.

In commodities, gold and silver prices held steady, copper edged up 0.3%, while natural gas prices dropped over 3%, on track for a fourth consecutive session of declines.

Bitcoin (CRYPTO: BTC) fell 1% to $63,613.

Monday’s Performance In Major U.S. Indices, ETFs

Major Indices	Price	1-day %chg
Russell 2000	2,232.07	0.3%
Dow Jones	41,221.87	0.1%
S&P 500	5,620.72	-0.2%
Nasdaq 100	19,547.44	-0.9%

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust (NYSE:SPY) was 0.1% lower to $561.33.
• The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 0.3% to $412.75.
• The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) fell 0.8% to $476.06
• The iShares Russell 2000 ETF (NYSE:IWM) inched 0.3% higher to $220.95.
• The Consumer Staples Select Sector SPDR Fund (NYSE:XLP) outperformed, by 0.6%. The Technology Select Sector SPDR Fund (NYSE:XLK) lagged, down by 1%.

Monday’s Stock Movers

• PDD Holdings Inc. (NASDAQ:PDD) plummeted 29% after reporting weaker-than-expected quarterly results and revenue guidance.
• Petroleo Brasileiro SA (NYSE:PBR) rallied over 6% after Morgan Stanley upgraded the Brazilian state-run oil company to Overweight raising the price target for Petrobras’ American Depositary Receipts shares from $18 to $20.

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Photo: Shutterstock

Posted In: $BTC DIA IWM NVDA PBR PDD QQQ SOXX SPY XLK XLP XLRE