S&P 500 Hits Record High; Dow Gains as Longboard Pharmaceuticals Surges 51% and Tech Stocks Rise
- S&P 500 Reaches Record High: The index closed at 5,859, driven by gains in tech stocks and anticipation of major earnings reports this week.
- Longboard Pharmaceuticals Jumps 51%: Shares surged after the announcement of a $2.6 billion acquisition deal by Denmark’s H. Lundbeck A/S.
- Big Tech Leads the Market: Major tech stocks like NVIDIA, Apple, and Microsoft rallied, pushing Nasdaq up by 0.9%.
- Boeing Drops on Layoff News: Boeing shares fell 0.9% amid plans to cut 10% of its global workforce.
- Oil Prices Slide: Crude oil fell over 2% as OPEC lowered demand growth forecasts for 2024 and 2025.
Are you looking for the best trading platform? Sign-up to the best trading platform for you for FREE. Takes 2 mins.
S&P 500 Hits Record High as Tech Stocks Surge
U.S. stocks advanced Monday, with the S&P 500 reaching a record high of 5,859, while the Dow Jones Industrial Average rose by 0.4% and the Nasdaq Composite added 0.9%. Gains were driven largely by the technology sector, ahead of key earnings reports expected from Bank of America, Goldman Sachs, and Johnson & Johnson on Tuesday. Other major companies like Morgan Stanley and United Airlines are set to release earnings mid-week.
Anticipation around corporate earnings buoyed investor sentiment, especially after last week’s strong performance from JPMorgan Chase and Wells Fargo. Investors continue to look for signs of economic resilience, with the week expected to bring more clarity on corporate performance amid inflation concerns.
Longboard Pharmaceuticals Surges Over 51% After Acquisition Announcement
The biggest mover of the day was Longboard Pharmaceuticals, which soared by 51% following a $2.6 billion acquisition deal by H. Lundbeck A/S, a Denmark-based pharmaceutical company. Lundbeck agreed to purchase Longboard for $60 per share as part of its strategy to expand into epilepsy treatment, with Longboard’s bexicaserin showing promising results in early-stage trials. This acquisition provides a strong exit for Longboard investors, pushing its stock to new heights.
Bexicaserin, currently in late-stage clinical trials, is being evaluated for its potential to treat seizures, generating investor excitement around the potential for the drug’s success and eventual market release. As Longboard’s valuation skyrockets, it’s clear that biotech remains a key player in driving market gains.
Tech Stocks Lead Market Gains
Tech heavyweights continued to dominate, with NVIDIA gaining 2.7%, nearing its record intraday high of $140.76 per share. Apple and Microsoft also posted gains of 1.3% and 1%, respectively. NVIDIA’s performance continues to reflect its bullish trend for the year, with the stock having surged by an impressive 178% so far.
The broader technology sector, represented by the iShares Expanded Tech-Software ETF, also hit a new record high, boosted by notable gains in companies like Autodesk and MicroStrategy. The momentum in tech stocks comes as investors remain optimistic about the sector’s growth potential, particularly in areas like artificial intelligence and cloud computing.
Boeing Faces Slump Amid Workforce Cuts
Shares of Boeing Co. fell 0.9%, extending early-session losses after the company announced plans to cut 10% of its global workforce, translating to about 17,000 layoffs. The job cuts are expected to affect executives, managers, and general employees, reflecting Boeing’s efforts to streamline operations amid declining demand in the aerospace industry.
These cuts come as Boeing continues to face challenges, including delays in production and reduced orders. The company’s decision to reduce its workforce is seen as a cost-saving measure, but investor confidence remains shaky as the aerospace giant navigates a difficult market environment.
Oil Prices Slide as OPEC Cuts Demand Forecasts
Oil prices dipped by more than 2% on Monday, with West Texas Intermediate (WTI) crude falling to $74.18 per barrel and Brent crude dropping to $77.79 per barrel. This marks the third consecutive month that OPEC has revised down its global demand growth forecast for both 2024 and 2025.
Concerns over weaker demand from China, the world’s largest energy consumer, weighed heavily on market sentiment. China’s economic struggles, highlighted by a recent slowdown in oil imports and underwhelming stimulus measures from Beijing, further exacerbated the downward trend in oil prices.
S&P 500 Hits Record High; Dow Gains as Longboard Pharmaceuticals Surges 51% and Tech Stocks Rise S&P 500 Reaches Record
S&P 500, Dow Notch Record Closing Highs as Crude Slumps Major Indexes Set Record Highs: The S&P 500 and Dow
Should You Buy Plug Power Stock While It’s Trading Below $4? A Closer Look at the Hydrogen Pioneer’s Future Plug
MicroStrategy Stock Rises 550% in 2024: Should You Invest? MicroStrategy (NASDAQ: MSTR) has been one of the top-performing stocks in
One of Tesla’s Biggest Bulls ‘Disappointed’ After Robotaxi Event Tesla’s much-anticipated Robotaxi event left one of its most ardent supporters