The Dow Jones Industrial Average (DJI) closed at a record high on Thursday as Wall Street made a comeback after a steep selloff at the beginning of August.
Dow Rises Over 200 Points
At the closing bell, the Dow was up 243.63 points at 41,335.05, a 0.59% gain. The new record marks the 25th time that the Dow has broken its record closing price in 2024.
The increase was driven by gains in Goldman Sachs, Intel, and Visa, which gained 1.35%, 1.91%, and 2.65%, respectively, during the Thursday trading session.
Intel continued to rise during the premarket trading session after it emerged that the company might be exploring options. The options could include a split or merger as the chipmaker struggles to remain competitive amid Nvidia’s dominance.
Those reports led to a rise in investor enthusiasm, with the stock rising nearly 3% at some point during Friday’s pre-market trading session. The gains come amidst one of the worst performance for the stock in decades, which is down 57.89% in 2024 to $20.13 per share.
According to Bloomberg, Intel is consulting with an investment banker about splitting some of its flagship products from its manufacturing unit, which has been in the red for a while.
Nasdaq Tumbles
On the same day, the Dow achieved a new record close, the Nasdaq Composite fell 0.23% to 17,516.43 points. The slide can mainly be attributed to Nvidia stock, which tumbled 6.4% on Thursday to $117.59. While Nvidia beat estimates in the second quarter, analysts were disappointed that it was not a bigger beat.
While Nvidia’s long-term prospects are promising, the stock has had a mixed performance in recent months. Thus far, it has wiped out nearly $41 billion in market cap from its June 2024 peak. On Thursday, it lost nearly $186 billion of its market cap, failing to deliver the same upside as past earnings events.
How To Invest In September 2024
The Fed is set to cut rates in September, which is historically known for being weak for the stock market. The weakness is known as the September Effect and has no known real cause since it was first observed over a century ago.
However, as with any investment decision, it is important to make a careful assessment of the market and invest only in areas where you feel confident. Additionally, by incorporating various investment strategies, such as short selling, you can potentially turn a profit during the dip.
The best way to make investment decisions in stocks is to find insightful news that breaks down market events.
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