The S&P 500 and major U.S. indexes started the second half of 2024 on a positive note, buoyed by robust gains in the technology sector amidst a shortened trading week following Independence Day celebrations. Monday saw the S&P 500 rise by 0.3%, boosted by a strong showing from tech stocks which drove the Nasdaq up by 0.8%. The Dow also saw a modest increase of 0.1%.
Tesla (TSLA) emerged as the standout performer of the day, surging 6.1% and leading gains among S&P 500 components. The rally followed Nio’s (NIO) record-high vehicle deliveries in June, propelling Nio’s American Depository Receipts (ADRs) up by 6.7%. Tesla is slated to unveil its own delivery figures on Tuesday.
Meanwhile, Merck (MRK) saw its shares jump 3.3% after securing exclusive rights for the development and commercialization of opevesostat1, a promising compound aimed at treating specific types of prostate cancer.
In the tech sector, Apple (AAPL) rose by 2.9% amid speculation that the company might hike prices for its premium iPhones to offset costs and maintain competitive pricing for lower-end models. Analysts believe such a strategy could help Apple expand its user base without alienating high-end consumers, who are less sensitive to price changes. Reports of Apple’s declining market share in the U.S. and China smartphone markets continue to circulate.
Conversely, cruise operators faced significant headwinds as concerns grew over Hurricane Beryl, now a Category 4 storm, potentially disrupting Caribbean voyages. Norwegian Cruise Line Holdings (NCLH) saw its shares plummet by 5.9%, the most substantial decline in the S&P 500, while Carnival Corp. (CCL) also registered a notable drop of 5.4%. Warm ocean temperatures have prompted meteorologists to predict an active hurricane season this year.
In the leisure sector, casino stocks experienced declines following disappointing gross gaming revenue figures from Macau in June, marking its lowest levels in 2024. Caesars Entertainment (CZR) dipped by 5%, and MGM Resorts (MGM) declined by 3.6%.
Warner Bros. Discovery (WBD) saw its shares slide by 4.6% after reports surfaced suggesting a potential merger between its HBO Max service and Paramount+’s streaming platform, owned by Paramount Global (PARA). Paramount Global itself saw a 2.4% decline in its shares.
Investors will now turn their attention to upcoming labor market data set for release later in the week, shaping expectations amidst ongoing market dynamics.
