Nasdaq 100, Dow Jones, S&P 500 News: Tech Stocks Rally as Treasury Yields Decline Amid Exchange Glitch

Tech Stocks Lead Gains as Treasury Yields Fall

The major U.S. stock indexes are putting in a mixed performance on Monday with the Dow and S&P lower and the Nasdaq barely holding on to its gains. The Nasdaq and S&P 500 edged higher early in the session, bolstered by declining U.S. Treasury yields which boosted megacap growth stocks. Investors also analyzed data indicating a slowdown in local manufacturing activity for the second month in May.

At 15:11 GMT, the blue chip Dow is trading 38479.04, down 207.28 or +0.54%. The benchmark S&P 500 Index is at 5269.31, down 8.20 or -0.16% and the tech-weighted Nasdaq is trading 16768.27, up 33.25 or +0.20%.

Megacap Stocks and AI Leader Rally

Key megacap stocks, including Apple, Meta, and Alphabet, saw gains between 1.1% and 1.7% as the yields on the U.S. 10-year and five-year Treasury notes fell by around 10 basis points each. Nvidia, a leader in artificial intelligence, surged 3.4%, propelling the Philadelphia SE Semiconductor Index up by 0.8%. This came after CEO Jensen Huang announced that the company’s next-generation AI chip platform would debut in 2026.

GameStop Soars on Reddit Influence

GameStop shares skyrocketed 26.8% following a Reddit post by influencer Keith Gill, known as “Roaring Kitty,” revealing a $116 million investment in the gaming retailer. This significant move highlights the ongoing impact of social media on stock prices.

Technical Issues and Sector Performance

The NYSE Equities announced an investigation into a technical issue that caused volatility pauses for several stocks. Six out of the 11 S&P 500 sectors rose, led by a 0.9% increase in technology. However, the energy sector dropped by 1.7%.

Economic Indicators Point to a Cooling Economy

The Institute for Supply Management reported that manufacturing activity fell to 48.7 in May, below the expected 49.6, suggesting a cooling economy. Yields began falling from one-month highs on Friday as investors anticipated a possible start to interest rate cuts by the Federal Reserve in September due to cooling inflation.

Despite ending their five-week winning streaks on Friday, all three major Wall Street indexes posted significant gains for May. The S&P 500 rose 4.8%, the Dow increased by 2.3%, and the Nasdaq nearly 7%, driven by robust earnings and hopes for easing monetary policy.

Market Forecast

Looking ahead, market movements will likely be influenced by key economic data releases this week, including manufacturing and services sector surveys, factory orders, and the crucial nonfarm payrolls report on Friday. These reports will provide insights into the health of the U.S. economy and potential Federal Reserve actions. As noted by Sam Stovall, chief investment strategist at CFRA Research, “AI drivers, earnings, and inflation will continue to drive the market,” with a particular focus on the upcoming employment data and broader economic reports.

This context suggests a cautiously bullish outlook, with continued attention to economic indicators and central bank policies.

Technical Analysis

E-mini S&P 500 Index futures are lower on Monday after giving up earlier gains. Prices moved higher during the pre-market session, following a successful test of the 50-day moving average on Friday. The price action indicates that this intermediate trend indicator, at 5216.84 today, is controlling the price action.

Given the short-term range of 5368.25 to 5290.25, traders should pay close attention to the market’s reaction at its pivot at 5329.25. A sustained move over this level could lead to a near-term test of its record high, while a prolonged move under this level will suggest a potential shift in investor sentiment.