The S&P 500 Gains and Losses Today: International Paper Names New CEO, Shares Soar
Key Takeaways
- After trading lower to start the session, the S&P 500 recovered to close 0.6% higher on Tuesday, March 19, 2024, ahead of Wednesday’s Federal Reserve policy decision.
- International Paper shares soared after the packaging firm announced that a new CEO would take the reins.
- Shares of Super Micro Computer dropped as the tech firm said it would raise capital via a public offering.
Major U.S. equities indexes staged an afternoon rally to notch a positive day ahead of the Federal Reserve’s policy decision on Wednesday. Although the central bank is widely expected to maintain interest rates at current levels, investors will look for hints on how policymakers intend to proceed with rate cuts.
The S&P 500 closed Tuesday’s session 0.6% higher. The Dow advanced 0.8%, while the Nasdaq posted a gain of 0.4%.
International Paper (IP) shares led the S&P 500 higher, soaring 11.0% after the packaging producer announced that Andrew Silvernail would become its new CEO starting May 1. Most recently an executive advisor at investment firm KKR, Silvernail believes International Paper is “well-positioned for growth.”
Shares of utility and power producer AES Corp. (AES) advanced 4.4%. Even after Tuesday’s gains, the stock remains down almost 20% so far this year. The firm’s strong renewable energy portfolio and strategic partnerships with technology companies are competitive advantages that could drive future growth.
Synopsys (SNPS) got a boost when Nvidia (NVDA) CEO Jensen Huang mentioned the electronic design automation company at an event in San Jose, California. Huang noted that the collaboration between Nvidia and Synopsys would play a key role in future chip design and manufacturing processes. Synopsys shares jumped 4.3% on Tuesday, while Nvidia stock was up 1.0%.
Super Micro Computer (SMCI) shares posted the weakest performance among S&P 500 stocks for the second day in a row, tumbling 9.0% after the tech firm announced it would raise capital via a public offering of 2 million shares. This week’s losses mark a dramatic reversal for the stock, which has soared in 2024 amid enthusiasm about the firm’s artificial intelligence (AI) potential.
Shares of chipmaker Advanced Micro Devices (AMD) sank 4.8% after Nvidia unveiled its latest generation of AI chips. The enhanced capabilities of Nvidia’s new products could represent additional competitive challenges to AMD.
Albemarle (ALB) shares dropped 3.2% on Tuesday. The world’s largest lithium producer recently announced plans to sell some of its metal holdings via auction as it aims to increase transparency in the lithium market.
In conclusion, the S&P 500 experienced a positive day of trading on Tuesday, with gains led by International Paper and AES Corp. However, Super Micro Computer and Advanced Micro Devices faced challenges that resulted in losses for their respective stocks. As investors await the Federal Reserve’s policy decision on interest rates, market dynamics continue to evolve, presenting both opportunities and risks for traders and investors alike.
For more financial news and updates, visit Investopedia.
Sources:
– Investopedia: https://www.investopedia.com/s-and-p-500-gains-and-losses-today-international-paper-names-new-ceo-shares-soar
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