Stocks Stabilize After Last Week’s Volatility, S&P 500 and Nasdaq Inch Higher

The S&P 500 is a key benchmark index that tracks the performance of 500 of the largest publicly traded companies in the United States. On Monday, August 12, 2024, there were some notable movers within the index, with certain stocks experiencing significant gains and losses. Let’s take a closer look at some of the biggest movers on that day.

Advancers:
KeyCorp (KEY) shares surged 9.1% on Monday, marking the top daily performance in the S&P 500. This surge came after the regional bank announced a $2.8 billion investment from Bank of Nova Scotia (BNS). The investment from the Canada-based financial giant represented an optimal way for KeyCorp to raise capital and enhance its strategic position.

Super Micro Computer (SMCI) shares added 6.3% on Monday, clawing back a portion of the losses posted the previous week. The server and data storage firm had reported lower-than-expected quarterly profits, citing increased costs of ramping up production of its direct liquid cooling (DLC) technology for AI data centers. However, a report in The Wall Street Journal highlighted the potential for liquid cooling to improve data center energy efficiency, which could benefit Supermicro in the long run.

Nvidia (NVDA) shares gained 4.1% on Monday as Bank of America named the stock one of its top „rebound“ picks. Analysts pointed to Nvidia’s strong position in the data center market as tech giants prepare to boost infrastructure spending. Additionally, analysts at UBS mentioned that a reported delay in the launch of Nvidia’s Blackwell AI chip may not be as consequential as originally anticipated.

Decliners:
Albemarle (ALB), the world’s largest lithium producer, saw its shares tumble 6.9% on Monday, posting the widest loss of any S&P 500 stock. Slumping lithium prices, driven by lower EV demand, continue to weigh on Albemarle’s stock. The company reported a net loss in its most recent earnings report and announced cost-reduction initiatives.

Solventum (SOLV) shares slid 4.8% on Monday after analysts at Wells Fargo trimmed their price target on the stock. The medical technology company, which completed its spinoff from 3M in April, reported a decline in net income in the second quarter, primarily due to reduced sales growth for certain products.

Warner Bros Discovery (WBD) shares fell 4.5% on Monday, extending losses from the previous week’s earnings report. The entertainment giant reported a significant quarterly loss, reflecting a write-down in the value of its cable networks. The cable business continues to face challenges from cord-cutting and the rise of streaming services.

Overall, the S&P 500 experienced a mix of gains and losses on Monday, reflecting the ongoing dynamics within the market. Investors will continue to monitor these movements and adjust their strategies accordingly.