Super Micro Computer Is Joining S&P 500

AI-connected company is replacing Whirlpool
By Newser Editors and Wire Services
Posted Mar 4, 2024 3:36 PM CST
Apple Weighs Down Markets After Hefty EU Fine
The market is “euphoric on AI,” according to Savita Subramanian, equity strategist at Bank of America.   (AP Photo/Peter Morgan)

Stocks edged lower on Wall Street at the start of a busy week.

  • The S&P 500 fell 6.13 points, or 0.1%, to 5,130.95 , Monday, coming off its latest all-time high.
  • The Dow Jones Industrial Average fell 97.55 points, or 0.2%, to 38,989.83.
  • The Nasdaq composite fell 67.43 points, or 0.4%, to 16,207.51.
Later this week, Federal Reserve Chair Jerome Powell will speak before Congress. What he says Wednesday could sway expectations for when the Fed will start cutting interest rates, now expected in June. The latest monthly jobs update will also arrive at the end of the week.

Momentum is slowing for US stocks after roaring higher on excitement that inflation appears to be cooling, cuts to interest rates may be coming and the US economy has so far shrugged off predictions for a recession, the AP reports. At the same time, a frenzy around artificial-intelligence technology has catapulted some stocks to stratospheric heights. Super Micro Computer, which sells server and storage systems used in AI and other computing, jumped another 18.7% Monday. It had already more than tripled in 2024 after more than tripling last year. It's the first trading for the stock since an announcement that it will join the S&P 500 index in two weeks, replacing Whirlpool.

The poster child of AI mania is Nvidia, whose chips are powering much of the move into AI. It rose another 3.6% Monday to bring its gain for the young year so far to nearly 76% after more than tripling in 2023. It was by far the strongest single force pushing the S&P 500 upward. Elsewhere on Wall Street, Macy's jumped 13.6% after two investment firms raised their offer to buy the shares they don't already own. Spirit Airlines lost 10.8%. JetBlue Airways is ending their proposed $3.8 billion combination after a court ruling blocked their merger. Apple fell 2.5% after the European Union hit it with a fine of nearly $2 billion for unfairly favoring its own music streaming service over Spotify and other rivals. It was the single heaviest weight on the S&P 500. (More stock market stories.)

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