The Dow rallied on Monday to a one-month high, while the Nasdaq tumbled over 1% as investors rotated out of AI-linked stocks and added some laggards to their portfolios, betting on Federal Reserve interest rate cuts this year.
The S&P 500 and Nasdaq ended lower on the rotation out of technology stocks whose outsized gains have led this year's rally. Still, nine of the S&P 500's 11 major industry sectors gained ground.
Market Snapshot
The S&P 500 lost 16.75 points, or 0.31%, to end at 5,447.87 points, while the Nasdaq Composite lost 192.55 points, or 1.09%, to 17,496.82. The Dow rose 260.88 points, or 0.67%, to 39,411.21.
Market Movers
Nvidia stock declined 6.7% after closing down 3.2% on Friday. Shares of the leading maker of artificial-intelligence chips have fallen for three straight sessions. Having briefly become the world’s most valuable company last week, Nvidia has now dropped back behind Microsoft and Apple in market value.
Shares of Apple rose 0.2%. The iPhone maker has been charged by the European Union for failing to comply with a new digital-competition law. The EU alleged that the company’s App Store rules are in breach of the Digital Markets Act “as they prevent app developers from freely steering consumers to alternative channels for offers and content.”
Meanwhile, The Wall Street Journal reported that Apple has held discussions with Meta Platforms, the parent company of Facebook and Instagram, about potentially integrating Meta’s generative AI model into Apple Intelligence, the company’s AI strategy for iPhones, iPads, and Macs. Meta shares were flat.
Trump Media & Technology Group stock jumped 21%. The parent company of former President Donald Trump’s Truth Social platform said Friday it expects proceeds of more than $69.4 million from the exercise of warrants last Thursday and Friday. The Securities and Exchange Commission last week signed off on the company’s registration statement and on the resale of shares and warrants. Trump Media has said it could potentially bring in proceeds of $247 million if all warrants are exercised.
United Parcel Service reached an agreement to sell its Coyote Logistics business to third-party logistics provider RXO for $1.025 billion. UPS bought the Coyote business in 2015 for $1.8 billion. UPS shares were up 1.5%, while RXO shares surged 23%.
Eli Lilly stock gained 0.7% after the company said Friday it was seeking Food and Drug Administration approval to expand the uses for weight-loss drug Zepbound to include sleep apnea.
Shares of ResMed, meanwhile, were falling 11% after Lilly said Zepbound reduced the severity of sleep apnea. ResMed makes devices that treat sleep apnea and COPD.
International Business Machines stock rose 1.5% to $175.01 after Goldman Sachs analyst James Schneider initiated coverage of IBM with a Buy rating and a price target of $200, which implies a 16% increase from the stock’s closing price of $172.46 on Friday.
Alnylam Pharmaceuticals stock rose 35% after the drugmaker announced positive top-line results from its study for a heart-disease treatment.
Affirm stock was rising 13% to $33.18 after Goldman Sachs assumed coverage of the payments company with a Buy recommendation and price target of $42.
Market News
Fast fashion retailer Shein filed for London listing in early June
Shein confidentially filed papers with Britain's markets regulator in early June, two sources said, kicking off the process for a potential London listing by the online fast-fashion retailer later in the year.
The China-founded company, which was valued at $66 billion in a fundraising round last year, began to explore a listing on the London Stock Exchange early this year, Reuters reported in May, citing sources. Shein's original plan to list in New York came unstuck following opposition from U.S. lawmakers.
Electric-vehicle maker Rivian simplifies output, cuts costs, aiming for first profit
Electric-vehicle maker Rivian's drive to cut costs and turn its first profit has removed over 100 steps from the battery-making process, 52 pieces of equipment from the body shop and over 500 parts from the design of its flagship SUVs and pickups.
The result of Rivian retooling its manufacturing process is a 35% reduction in cost of materials for vans and savings of "similar magnitude" for its other lines, CEO RJ Scaringe told Reuters.
