The Dow Jones Industrial Average and other major indexes were on track to extend losses from Friday, with Nvidia leading a reversal in the tech sector. Meanwhile, bitcoin surged to record highs, driving rallies in Coinbase and MicroStrategy.
In morning trading on Monday, the Dow Jones Industrial Average and the S&P 500 both fell by 0.5%, while the tech-heavy Nasdaq composite declined by 0.3%.
Among exchange-traded funds (ETFs), the Nasdaq 100 tracker Invesco QQQ Trust ETF dropped by 0.5%, while the SPDR S&P 500 ETF lost 0.4%.
The 10-year Treasury yield edged higher to 4.09%, while oil prices continued their decline from Friday, with West Texas Intermediate futures falling 1% to around $77 a barrel.
Despite initial losses, artificial intelligence leader Nvidia reversed its trajectory to gain 0.9%, while Super Micro experienced a 7% decline in Monday morning trading. Nvidia stock remains significantly above its flat base’s entry point of 505.48 and is featured as an IBD Leaderboard stock.
Bitcoin’s price surged by 3.5% on Monday morning, reaching a new record high near $72,000. This rally boosted cryptocurrency stock Coinbase, which saw a 3% increase early in the session, well above its buy point of 193.64. Additionally, MicroStrategy surged by more than 8%, with both companies hitting new highs.
The focus this week is on the release of the consumer price index (CPI) by the U.S. Labor Department, expected to show a 0.4% increase on the month and a 3.1% rise year-over-year. Core prices are anticipated to climb 0.3% month-over-month and 3.7% year-over-year in February. Additionally, U.S. retail sales data is awaited on Thursday, providing insights into consumer sentiment.
Key earnings reports from Adobe, Oracle, and Jabil are also on the agenda.
In Friday’s trading, the Dow Jones Industrial Average slipped 0.2%, while the S&P 500 declined 0.7%, and the Nasdaq composite fell 1.2%. Defensive sectors like utilities and real estate, along with the energy sector, saw gains, while technology and consumer discretionary sectors faced challenges.
Given these market dynamics, it’s essential to stay informed by reading IBD’s The Big Picture column, especially to adjust to evolving market conditions and new exposure levels.