Starting both the week and the month, we experienced yet another roller-coaster day driven by geopolitical developments. Israeli strikes on Lebanon resulted in Iranian officials pausing ongoing negotiations with the United States. The stock market was generally supported by the technology sector due to continued optimism surrounding AI, although that strength was not shared across all sectors. The bond market also weakened earlier in the day. Nevertheless, as markets approached the close, the U.S. President stated that talks with Iran were still ongoing, and Israel and Hezbollah agreed to halt attacks against each other in Lebanon. Stocks subsequently moved higher, with many indexes erasing earlier losses.
The Dow Jones Industrial Average remained largely flat at 51,079. The NASDAQ rose 0.6% to 30,514, while the S&P 500 gained 0.26% to 7,600. The technology sector, which represents more than one-third of the S&P 500, gained nearly 2.5% after Nvidia unveiled a highly efficient new processor designed to bring advanced AI agents directly to personal computers. This announcement sparked another wave of gains among chipmakers and computer manufacturers. As we potentially enter the era of edge computing, cloud providers posted losses. The energy sector also advanced on significantly higher oil prices.
Interest rates remained nearly unchanged, with the 5-year Treasury yield at 4.16% and the 10-year Treasury yield at 4.45%, despite volatility throughout the day.
Economic data released today were overwhelmingly positive, with both construction and manufacturing activity rising more than expected.
A job openings report will be released tomorrow to provide further insight into the state of the labor market. Adams Wealth Advisors will continue to provide updates.