The Dow Jones Industrial Average plummeted 370 points on Monday, reacting to earnings reports from Caterpillar and McDonald’s. Despite this, Nvidia stock surged after Goldman Sachs raised its price target and included the chip giant in its list of top stocks. Following the opening bell, the Dow Jones Industrial Average dropped 1%, while the S&P 500 fell 0.6% and the tech-heavy Nasdaq composite also experienced a 0.6% decline in morning action.
The 10-year Treasury yield rose to 4.16% on Monday, and oil prices showed signs of potentially extending last week’s heavy losses as West Texas Intermediate futures fell below $72 a barrel. Caterpillar’s stock jumped 5% post-earnings, while McDonald’s fell 2% after missing revenue targets, despite beating earnings estimates.
Nvidia experienced a 3.5% rally after Goldman Sachs labeled it as a “Conviction Buy,” increasing its price target to $800 from $625. Additionally, this week’s economic calendar is less eventful than the previous week, which included the Federal Reserve’s policy decision and the January jobs report. Moreover, notable earnings reports this week include those from Dow Jones components Amgen and Disney. NXP Semiconductors and Ford Motor will also report their earnings.
