U.S. stocks closed mixed to start the new trading week, with the Nasdaq Composite and Nasdaq 100 gaining more than 1% while the Dow industrial average edged lower.
After last week’s selling, buyers returned to some of the technology names. Amazon led the large-cap rebound with a gain of nearly 5%, while storage, semiconductor and software shares featured prominently among the strongest performers.
However, the gains were far from universal. More stocks declined than advanced on both the S&P 500 and Nasdaq. Buyers are making a play, but broader participation would give the recovery more credibility.
The closing numbers
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Dow Industrial Average: fell 35.81 points, or 0.07%, to 51,966.60.
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S&P 500: rose 33.20 points, or 0.43%, to 7,692.64.
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Nasdaq Composite: rose 290.85 points, or 1.11%, to 26,430.89.
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Russell 2000: rose 6.92 points, or 0.25%, to 2,728.29.
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Nasdaq 100: rose 341.80 points, or 1.17%, to 29,529.35.
Amazon leads, with help from chips and software
Amazon was the standout among the major technology names, rising 4.98% to $262.45. Nvidia added 1.38% to $217.09, while Microsoft gained 0.84% to $533.52.
Apple did not join the advance, slipping 0.15% to $342.94. That divergence is another reminder that even within the largest technology companies, traders are picking their spots.
Some of the stronger individual performers included:
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Western Digital: +6.12%.
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SanDisk: +5.50%.
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Datadog: +5.35%.
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SK Hynix ADR: +4.67%.
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Palantir: +4.36%.
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Marvell: +4.06%.
The buying extended beyond technology. Celsius gained 5.43%, while Moderna rose 4.07%.
Dow weakness reflects a divided market
The Dow finished modestly lower, with 19 components declining and 11 advancing.
Amazon’s strong gain, together with advances in IBM (+1.85%), Nvidia (+1.38%) and UnitedHealth (+1.36%), helped cushion the downside. However, several financial, healthcare and other Dow components moved lower:
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JPMorgan: −1.79%.
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Amgen: −1.75%.
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3M: −1.66%.
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Merck: −1.58%.
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Verizon: −1.44%.
The result was a session where the technology-heavy indices delivered solid gains, but the average stock had a more difficult day.
Market breadth leaves buyers with work to do
The underlying participation figures were less encouraging than the headline index gains:
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S&P 500: 166 stocks advanced versus 318 that declined.
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Nasdaq: 1,432 advanced versus 1,768 that declined.
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Nasdaq 100: 60 advanced versus 40 that declined.
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NYSE: 611 advanced versus 1,181 that declined.
The Nasdaq 100 had better participation within its own group. Across the broader market, however, decliners held the advantage.
That does not erase the gains. It does tell traders that Monday’s rebound was concentrated. The next step for buyers is to hold those gains and bring more stocks along.
The trading lesson: look beneath the index
An index can rise even when more of its stocks fall. In a market-cap-weighted index such as the S&P 500, larger companies carry more influence. Strong gains in a handful of heavyweights can outweigh smaller declines across many other stocks.
For traders, the index provides the broader backdrop, but each stock still needs its own technical roadmap. A rising Nasdaq can help sentiment. Your stock still needs to get above—and stay above—its resistance levels.
Monday gave buyers some breathing room. Whether they can build on it is the next test.
Related analysis from today
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This article was written by Greg Michalowski at investinglive.com.