Stock Market Today: Nvidia Lifts Nasdaq, Boeing Drags on Dow

Tech and communication services stocks outperformed Monday as the Magnificent 7 stocks rallied.
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(Image credit: Getty Images)

Stocks closed mostly higher Monday with tech outperforming as the Magnificent 7 stocks rallied and Treasury yields retreated. 

Investor sentiment is upbeat ahead of a busy week of economic events – one that includes Thursday's release of the December Consumer Price Index (CPI) report – and the start of fourth-quarter earnings season.  

"This week's inflation data could determine whether last week's pullback is a blip on the radar or something larger," says Chris Larkin, managing director of trading and investing at E*TRADE from . "The S&P 500 started the year with three straight down days for just the ninth time since 1991, and jobs data showed the labor market is still percolating."

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Indeed, stocks snapped a nine-week winning streak last week after that hotter-than-anticipated jobs data has some thinking the Federal Reserve could keep interest rates higher for longer. According to CME Group's , futures traders are currently pricing in a 63% chance the Fed will cut rates by a quarter-percentage point at its March meeting.

Nvidia shines in strong day for tech stocks

Technology saw the biggest gains of the 11 S&P 500 sectors Monday, adding 2.5%. Communication services came in a distant second with its 1.6% gain. This impressive price action was helped by solid returns for the Magnificent 7 stocks – the group of mega caps that were market leaders in 2023. 

Most notably, Nvidia (NVDA) surged 6.4% after the tech giant to support generative AI (artificial intelligence) apps on personal computers. 

Retreating Treasury yields also gave a boost to rate-sensitive tech and communication services stocks. The yield on the 2-year government note fell 2.7 basis points to 4.364%, while the yield on the 10-year bond dropped 3.2 basis points to 4.01%. (One basis point equals 0.01%.) 

Unsurprisingly, the tech-heavy Nasdaq Composite jumped 2.2% to 14,843, while the broader S&P 500 rose 1.4% to 4,763. 

Boeing lags after FAA grounds 737 Max 9 planes

The Dow Jones Industrial Average, meanwhile, closed with a more modest 0.6% gain to 37,683 as weakness in Boeing (BA) stock dragged on the 30-stock index. 

Shares of BA plunged 8.0% after the Federal Aviation Administration (FAA) temporarily grounded the model of jetliner after a fuselage panel on an Alaska Airlines (ALK, -0.2%) 737 Max 9 blew out during flight.

"Boeing's most recent issue, as tragic as it may have been, does not come as a complete surprise" to us, says Christopher Raite and Peter McNally, analysts at global research firm . "Since the onset of the pandemic, there has been an acute shortage of highly skilled laborers, which can be viewed as a key driver for the myriad of recent issues." The analysts will be "closely monitoring the situation to discern whether this is an isolated event or if there are additional safety risks associated with the Boeing 737 Max." Earlier today, the FAA said it has approved inspection procedures for the aircraft.

As for the Street's recommendations, Boeing remains one of the best-rated Dow Jones stocks. Of the 30 analysts covering the blue chip tracked by , 20 say it's a Strong Buy, four have it at Buy and six call it a Hold. This works out to a consensus Buy recommendation.

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Senior Investing Editor, 49ermike.com
With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at 49ermike.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.