Title: Dow Hits Record Highs as Tech Falters Ahead of Fed Cut; Apple Event Looms
Investing.com-- The Dow surged to new heights on Monday with a shift towards cyclical stocks like financials, signaling a rotation out of tech ahead of an anticipated Federal Reserve cut next month.
At closing, the Dow rose 0.16% to reach a record of 41,240.52, while the S&P 500 closed 0.8% lower and the Nasdaq was down 0.3%.
Tech stocks stumbled as investors moved away from growth sectors, with Nvidia dropping 1% before its upcoming earnings announcement. Meanwhile, Apple saw a slight uptick in anticipation of its product launch event on Sept. 9.
In other news, chip stocks took a hit with Micron Technology falling over 3% after a price target cut, and PDD Holdings Inc DRC plummeted 28% following disappointing revenue results.
The market shift towards cyclical sectors like financials, which hit 52-week highs, is driven by expectations of significant benefits from rate cuts.
Looking ahead, the Fed will consider key economic indicators such as PCE inflation data as it gears up for a potential rate cut in September. Recent statements from Fed officials suggest a strong likelihood of a rate cut next month, with a focus on labor market risks and inflation nearing target levels.
Overall, investors should keep a close eye on tech stocks, upcoming earnings reports, and the Fed's decision-making process, as these factors can have a significant impact on their portfolios and financial well-being.