The major U.S. stock indexes closed modestly higher on Monday despite ongoing concerns about the recent downgrade of U.S. debt and uncertainty over future interest rate cuts. The Dow Jones Industrial Average led the gains with a 0.3% increase, buoyed primarily by strength in the health care sector.
UnitedHealth Group (UNH) was the standout performer on the Dow, rebounding nearly 8% after steep losses last week, though it remains down approximately 38% year-to-date and below key moving averages. Other health care contributors included Merck (MRK) and Amgen (AMGN), each advancing over 1%.
Conversely, Nike (NKE) declined nearly 2%, while Chevron (CVX) and Apple (AAPL) both gave back more than 1%. Nvidia (NVDA) managed a slight gain, and Walmart (WMT) pared losses following comments from Treasury Secretary Scott Bessent regarding tariffs.
The Nasdaq Composite also ended slightly positive after spending much of the day in negative territory. Gilead Sciences (GILD) and AppLovin (APP) led the Nasdaq with gains exceeding 3% and 2%, respectively. Tesla (TSLA) fell over 2%, while Grail (GRAL) dropped more than 4%.
The S&P 500 finished 0.1% higher, with mixed sector performance. Industrials and health care sectors posted gains, while energy and consumer discretionary lagged.
Moderna (MRNA) surged over 6%, and Dollar General (DG) rose 5%. Renewable energy firm First Solar (FSLR) declined nearly 8%, and utility AES (AES) fell over 4%. Palantir Technologies (PLTR) remained down more than 2% despite recovering from session lows.
Trading volume was mixed, with declines on the NYSE and increases on the Nasdaq. Declining stocks slightly outnumbered advancing ones on the Nasdaq and led 5-to-4 on the NYSE. The Russell 2000 index fell 0.4%, trading above its short-term and 50-day moving averages but below the 200-day line. Growth stocks outperformed, with the Innovator IBD 50 ETF (FFTY) up 0.4%, bringing its year-to-date gain to just over 2%.
Federal Reserve Bank of Atlanta President Raphael Bostic indicated a more cautious outlook on rate cuts, suggesting only one reduction in 2025 versus the previously projected two. He emphasized concerns about inflation pressures complicating the Fed’s dual mandate. Treasury yields retreated from session highs, with the 10-year note at 4.47%, the 2-year at 3.97%, and the 30-year yield retreating to 4.93%.
In the cryptocurrency space, Bitcoin edged higher, trading just below $105,500. Bitcoin-related ETFs such as the iShares Bitcoin Trust (IBIT) and ARK 21Shares Bitcoin ETF (ARKB) gained over 1%. Coinbase Global (COIN) declined nearly 1% but remains above key moving averages.
MicroStrategy (MSTR) rose nearly 3%, recovering above its 10-day and 200-day moving averages. Bitcoin miners Hut 8 (HUT) and Riot Platforms (RIOT) fell 1% and 2%, respectively, while Marathon Digital (MARA) held near its 200-day average.
Separately, Netflix secured a deal to stream Sesame Street globally after Warner Bros. Discovery chose not to renew its licensing agreement, signaling Netflix’s continued expansion in children’s programming.
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