Stocks opened lower on Monday, but the major indexes found their footing by lunchtime and rallied into the close. Tech stocks helped lead the charge, with Autodesk (ADSK ) emerging from the news of activist investors. However, the software maker was not the only big winner of the day, with several semiconductor stocks achieving significant victories.
At closing, the Dow Jones Industrial Average rose 0.5% to 38,778 and the S&P 500 was 0.8% higher at 5,473. heavy technology Nasdaq Composite outperformed, gaining 1.0% to 17,857, thanks to the breakout of several large- and mega-cap stocks.
Autodesk, for example, rose 6.5% following news that Starboard Value has acquired a roughly $500 million stake in the company. According to The Wall Street Journal, the activist investor plans drive important changes
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Chip stocks rebound to start the week
While ADSK stock's rally was notable, the big upside seen in semiconductor stocks was arguably more impressive.
Micron technology (IN ), for example, gained 4.6% after Susquehanna International Group analyst Mehdi Hosseini earnings schedule
Hosseini says there is greater confidence in DRAM and NAND chip pricing trends, which should help Micron post a successful quarter. "MU has been one of our main ideas for a long time and continues to be," adds the analyst.
Micron's gain created a halo effect for other chip stocks, including super microcomputer (SMCI +5.1%) and Broadcom (AVGO +5.4%).
Adobe pulls back on profit-taking
Not all tech stocks hot post-earnings rally Adobe (ADBE ) shares finished 1.3% lower today. However, this negative price action was likely just profit-taking given the Photoshop maker's long-term prospects.
In its fiscal second-quarter earnings report released Thursday evening, Adobe "placed artificial intelligence (AI) center stage and is more strongly positioned to benefit from recent advances in generative AI," it says Esteban Messer Collective[i]
Messer adds that "it's amazing to see them transform into an AI-first company through their own models," including Firefly, and integrating with other AI companies, including OpenAI.
The stock market will be closed on Wednesday
This week is short for market participants. As a reminder, Wednesday is a stock market vacation
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