Dow, S&P 500 and Nasdaq slide as investors reconsider rate cut bets

Live6 updates

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  Monday, October 7, 2024 at 6:30 p.m. GMT+2

  DJT Stock Rises After Elon Musk Appears at Trump Rally

  Shares of Trump Media & Technology Group (DJT) rose about 15% on Monday after Elon Musk made a surprise appearance at Donald Trump's rally in Butler, Pennsylvania over the weekend – the same place where the former president survived an assassination attempt in July .

  The tech billionaire, who serves as CEO of Tesla (TSLA) and SpaceX and also owns the social media platform X (formerly Twitter), has clearly expressed his support for Trump ahead of next month's election. Trump has even said that he would consider a Cabinet post for Musk, but that the businessman probably wouldn't be able to serve “in all the things he has going on.”

  At Saturday's rally, Musk told the crowd that Trump is the only candidate who can “preserve democracy in America,” adding that if Trump doesn't win, this will be “the last election.”

  The former president remains in a deadlocked race against current vice president and Democratic candidate Kamala Harris, who has just made numerous media appearances trying to consolidate recent momentum in the polls.

  Harris appeared on an episode of “Call Her Daddy,” a popular podcast for Generation Z, along with a sit-down interview for “60 Minutes.”

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  Monday, October 7, 2024 at 5:51 p.m. GMT+2

  Super Micro Computer shares are rising on demand for AI servers

  Nvidia (NVDA) customer and AI server maker Super Micro Computer (SMCI) rose as much as 17% on Monday after the company reported delivery data.

  Super Micro Computer announced Monday morning that it has shipped over 2,000 of its high-end servers to major AI data centers since June. The company said it is now selling servers with over 100,000 AI chips per quarter – a sign that there will not be a decline in AI demand in the near future, as analysts and investors have feared. The server maker said it sells its hardware to “some of the largest AI factories ever built.”

  Super Micro's stock rise on Monday is helping the company recover from a downturn in late September, when shares fell 15% after reports that the company was being investigated by the U.S. Department of Justice for possible accounting violations.

  Super Micro stock soared at the start of 2024 as Big Tech rushed to develop new generative artificial intelligence technologies with ever-increasing energy demands. The stock has fallen since reaching highs of nearly $120 a share in March.

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  Monday, October 7, 2024 at 5:08 p.m. GMT+2

  Oil extends gains, rises 2% as market awaits Israeli retaliation against Iran

  Oil prices extended gains on Monday after posting their biggest weekly gain in more than a year on expectations of Israeli retaliation against Iran for last week's missile attack.

  West Texas Intermediate futures (CL=F) rose more than 2% to trade above $76 a barrel after gaining more than 9% last week. Brent crude futures (BZ=F), the international benchmark, also rose more than 2%, hitting $80 a barrel for the first time since August.

  Tel Aviv has announced a retaliation after Iran fired around 200 ballistic missiles at Israel on Tuesday. Traders have priced in the possibility that a response will target Iran's oil infrastructure.

  “The Iranian military has responded by saying that any attack by Israel would trigger an even stronger response from Iran, so the impact of the geopolitical phases on crude oil continues to grow,” Dennis Kissler, senior vice president of trading at BOK Financial, wrote on Monday.

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  Monday, October 7, 2024 at 4:24 p.m. GMT+2

  'Mag 7' Stocks Mixed: Nvidia Rises 1%, Amazon Falls 2%

  Nvidia (NVDA) and Amazon (AMZN), two of the “Magnificent Seven” megacap tech stocks, moved in opposite directions on Monday.

  Chip heavyweight Nvidia rose more than 1% to trade above $126 per share.

  E-commerce and cloud giant Amazon fell more than 2% after Wells Fargo downgraded the stock from Overweight to Equal-weight on expectations that advertising revenue will slow.

  According to Ken Gawrelski, an analyst at Wells Fargo, growth in Amazon's cloud division is unlikely to offset the decline in margins. “AWS strength alone is not enough,” he wrote.

  

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  Monday, October 7, 2024 at 3:30 p.m. GMT+2

  Stocks open lower as the 10-year Treasury yield tops 4%

  Major averages opened lower on Monday as the 10-year Treasury yield (^TNX) rose back above 4%.

  The Dow Jones Industrial Average (^DJI) fell about 0.3% after hitting a new record high on Friday. The S&P 500 (^GSPC) fell about 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) fell 0.5%.

  The yield on the benchmark 10-year Treasury note (^TNX) hit 4% for the first time since August as hopes of a further 50 basis point rate cut from the Federal Reserve faded following a stronger-than-expected jobs report for September.

  Oil prices extended gains on Monday after posting their biggest weekly rise in more than a year, as markets awaited Israel's retaliation against Iran over its rocket fire last week.

  West Texas Intermediate crude futures (CL=F) rose more than 1% to trade above $75 a barrel after gaining more than 9% last week. Brent futures (BZ=F), the international benchmark, also rose more than 1% to trade above $79 a barrel.

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  Monday, October 7, 2024 at 2:38 p.m. GMT+2

  Pfizer shares are rising on reports that Starboard is taking a $1 billion stake

  Shares of Pfizer (PFE) rose 2.6% in premarket trading on Monday as investors reacted to multiple media reports that activist investor Starboard Value has taken a $1 billion stake in the pharmaceutical giant.

  Starboard has turned to Pfizer executives Ian Read and Frank D'Amelio to help turn the tide at the drugmaker, various media outlets reported, citing unnamed sources. Pfizer, the maker of the world's first approved COVID-19 vaccine, has struggled to maintain its dominance after the pandemic. Read and D'Amelio expressed interest in supporting Starboard, the Wall Street Journal reported. Starboard's plans and related changes at Pfizer are unclear.

  The stock's moves early Monday morning will put it in the black for the year, but shares are well below 2022's record highs of nearly $60.

  Pfizer is scheduled to report earnings on October 29th. Wall Street analysts expect the company to report revenue of $14.8 billion, up about 12% from a year ago. Only half of analysts covering the stock recommend buying it, according to Bloomberg data.