Dow, S&P 500 clinch fresh highs as Nvidia surges to record

SoFi Technologies (SOFI) stock jumped as much as 9% after the online lender announced a $2 billion agreement with Fortress Investment Group to expand its loan platform business. The segment refers pre-qualified borrowers to loan origination partners and connects lenders with borrowers.

The move reflects SoFi’s strategy of diversifying from its roots in student loan refinancing.

“SoFi’s loan platform business is an important part of our strategy to serve the financial needs of more members and diversify toward less capital-intensive and more fee-based sources of revenue,” said Anthony Noto, CEO of SoFi, in a statement.

Of the Wall Street analysts covering the stock tracked by Bloomberg, only six recommend buying the stock, while 10 have Hold ratings and three have Sell ratings. The stock is up nearly 20% from last year but far from its record intraday high near $27 upon its IPO in 2021.

Analysts see shares falling to $8.91 over the next 12 months, according to Bloomberg data.

The Dow Jones Industrial Average (^DJI) clawed its way into green territory by 10:30 a.m ET to hover at new intraday record highs. The blue-chip index had slipped as much as 0.3% shortly after the market open following a record close on Friday.

Meanwhile the S&P 500 (^GSPC) gained 0.6% Monday, on pace for another record close.

Nvidia (NVDA) supplier TSMC (TSM) saw shares of its US-listed equity rise more than 1% in early trading, with the stock notching a new record intraday price of $193.96 per share and rejoining the $1 trillion club.

TSMC shares previously hit an all-time high above $193 each in July after the Taiwanese contract chipmaker reported second quarter earnings. That surge briefly put its market capitalization above $1 trillion before shares pared gains. The stock fell back to earth as investors weighed its high valuation multiples, geopolitical risks, and concerns over AI demand.

TSMC last week revealed third quarter revenue of 759.7 billion New Taiwan dollars ($23.6 billion). That beat the NT$748.3 ($23.3 billion) expected, according to Bloomberg data, as well as the company’s prior guidance of $22.4 billion to $23.2 billion.

Some 23 Wall Street analysts covering the stock tracked by Bloomberg recommend buying TSMC shares, while only one analyst has a Hold rating. Analysts see shares rising to $216.59 each over the next 12 months, according to Bloomberg data.

Boeing (BA) shares slipped more than 2% as investors questioned the crisis-hit plane maker’s future amid job cuts and a strike that is now in its fifth week.

On Friday, the company said it will cut 17,000 jobs, or about 10% of its workforce.

“Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term,” CEO Kelly Ortberg said in a message to employees posted on Boeing’s website on Friday.

An ongoing strike by Boeing’s biggest union, the International Association of Machinists and Aerospace Workers (IAM), is proving costly on several fronts for the company.

S&P Global put the cost estimate of the strike that started on Sept. 1 at roughly $1 billion per month. Last week, talks between Boeing and IAM broke down, with the company withdrawing its contract proposal.

Nvidia (NVDA) stock jumped more than 2% at the open on Monday, surpassing its June record high close of $135.58.

The stock was a couple of dollars away from its all-time intraday high just past $140.76.

The major averages opened mixed on Monday as investors turned their focus to upcoming big bank earnings and other quarterly results from major companies.

The S&P 500 (^GSPC) moved up roughly 0.3% to eye a new record high. On Friday, the broader index ended above 5,800 for the first time.

The tech-heavy Nasdaq Composite (^IXIC) was up 0.5% soon after the bell on Monday, while the Dow Jones Industrial Average (^DJI) slipped 0.2% from its Friday record close.

Earnings season continues in full swing this week, with Citi (C), United Airlines (UAL), AI chip equipment maker ASML (ASML), Netflix (NFLX), and American Express (AXP) among those expected to report.

Oil futures dropped more than 2% as OPEC cut its demand forecast for 2024 and 2025. Traders also reacted to a lack of detail from China’s Finance Minister over the weekend on any large new stimulus spending.

Nvidia (NVDA) stock rose 1% in premarket trading to $136.22, putting the chipmaking giant on track to surpass its previous record closing price of $135.58 posted in June.

The AI chipmaker’s shares have made substantial gains in October following a massive $6.6 billion funding round for ChatGPT-maker OpenAI, much of which will be funneled back to Nvidia. AI leaders, including Nvidia CEO Jensen Huang, have cited furious demand for the company’s latest Blackwell chips. Its stock is up 8% over the past week.

Nvidia’s gains put it on track to once again claim the rank of No. 1 most valuable company in the world in terms of market capitalization. It currently holds the No. 2 position behind Apple (AAPL). The chipmaker’s market cap stood at $3.3 trillion Monday, while Apple’s was $3.46 trillion. Apple, Microsoft (MSFT), and Nvidia have traded places as the top three companies over the past year.

Nvidia is set to report earnings on Nov. 19. Wall Street analysts expect it to report revenue of $33 billion, up 82% from the prior year, according to Bloomberg consensus estimates. Some 90% of those covering the stock and tracked by Bloomberg recommend buying Nvidia shares.