Wall Street's main indexes closed higher on Monday, with megacap growth stocks such as Alphabet and Tesla supporting a rebound in technology-heavy Nasdaq while investors also waited anxiously for the U.S. Federal Reserve's meeting this week.
Market Snapshot
The Dow Jones Industrial Average rose 75.66 points, or 0.20% , to 38,790.43, the S&P 500 gained 32.33 points, or 0.63%, to 5,149.42 and the Nasdaq Composite gained 130.27 points, or 0.82%, to 16,103.45.
Market Movers
Tesla jumped 6.3% after the electric-vehicle company said it was raising the price for all of its Model Y vehicle trims in the U.S. by $1,000 at the end of the month.
Alphabet rose 4.6% on a report from Bloomberg that said Apple was holding discussions with Google over a deal to use the Gemini artificial intelligence engine in the iPhone. Apple was up 0.6%.
Nvidia’s most hyped debut yet — its long-awaited next chip — was revealed at its annual conference on Monday. Chief Executive Jensen Huang revealed Nvidia’s NVDA new Blackwell chip architecture during the keynote address of the company’s GTC event, promising serious performance benefits relative to prior-generation models. Shares were off more than 1% in after-hours action in a possible sell-the-news reaction.
Super Micro Computer, which has soared 252% this year and 916% over the past 12 months, joined the S&P 500 index on Monday. Shares of Super Micro, a maker of servers that help with artificial intelligence applications, were down 6.4% on Monday. Deckers Outdoor, the maker of Ugg shoes and Hoka sneakers, also joined the index. Deckers fell 0.1%.
Nuvei surged 32% after The Wall Street Journal reported that the Canadian payments processor, which is backed by actor Ryan Reynolds, is in talks with private-equity firm Advent International about a buyout. Nuvei said in a statement that its board has formed a special committee to evaluate and consider “expressions of interest received by the company.” Nuvei said it “further confirms that it is engaged in discussions with certain third parties in connection with a potential transaction involving continued significant ownership by certain of the holders of multiple voting shares, including Phil Fayer, Nuvei’s founder, chair and chief executive officer.”
HashiCorp was up 8.1% after a report said the software infrastructure company has been considering options including a sale. HashiCorp has been working with a financial adviser in recent months to gauge interest from potential buyers, Bloomberg reported, citing people with knowledge of the matter.
U.S.-listed shares of XPeng rose 1.8% after the Chinese electric-vehicle maker disclosed plans to launch a cheaper brand. XPeng plans to launch the new brand within the next month. The cars will be priced at between 100,000 yuan to 150,000 yuan, or about $14,000 to $21,200, the company’s chairman and CEO said over the weekend, according to XPeng’s official WeChat account, Dow Jones Newswires reported.
Logitech International declined 6.9% after the provider of computer peripherals, videogame accessories, and videoconferencing hardware announced that Chief Financial Officer Charles Boynton was resigning and confirmed its outlook for the fiscal year.
PepsiCo rose 4% to $171.26 after shares of the beverage and snacks company were raised to Overweight from Equal Weight at Morgan Stanley with a price target of $190.
Science Applications International was down 10% after reporting fiscal fourth-quarter adjusted earnings that missed analysts’ estimates and a revenue decline of 12% to $1.74 billion, partly due to the sale of the company’s logistics and supply chain management business.
Market News
Cisco Closes $28 Billion Acquisition of Splunk, Betting Big on AI
Cisco Systems closed its $28 billion all-cash acquisition of cybersecurity and analytics company Splunk on Monday.
The deal, the largest in Cisco’s history, was completed months earlier than projected and reflects the extraordinary effort many companies are undertaking as they remake their businesses around data and artificial intelligence.
Musk defends his ketamine use as beneficial for investors in new video
CEO Elon Musk said his ketamine prescription was beneficial for Tesla's investors in a video interview with former CNN anchor Don Lemon posted online on Monday.
Musk said the drug helps him manage a "negative chemical state" similar to depression in the interview conducted this month that also touched on politics, content moderation on X and Tesla.
"From the standpoint of Wall Street, what matters is execution," said Musk, who runs the automaker, the rocket company SpaceX and the social media platform X. Musk argued Tesla was worth as much as the rest of the car industry combined.