Shares of technology rose slightly amid deal activity.
Google parent Alphabet reportedly neared a deal to buy Israeli cloud cybersecurity concern Wiz for $23 billion.
An emerging theory among Wall Street strategists holds that Apple's artificial-intelligence push will hasten users to upgrade their iPhones and iPads to avail of the AI technology, said J.D. Joyce, president of Houston money manager Joyce Wealth Management.
There's also a political spin to stock trading Monday, as the shocking assassination attempt was seen as changing the calculus in the presidential election campaigns.
"Maybe this boosts chances of a Republican win and that might result in lower regulations, lower taxes and the things that could be perceived as more business friendly," said Joyce.
For a multinational corporation like Apple, investors might be thinking: "What if corporate tax rates don't go up, what if corporate tax rates actually go down?" said Joyce.
The Roundhill Magnificent Seven exchange-traded fund, which tracks the seven largest mega-cap stocks, rose about 0.5% as a 2024 market trend reversed itself.
For much of the year, the Magnificent Seven rallied while small-cap and other economically cyclical stocks languished. Now, the reverse is true.
For the month to date, the returns on the small-cap Russell 2000 are more than double that of the broad S&P 500, noted Joyce, the Houston money manager.
Still, the AI boom will mean that investors remain interested in the so-called Magnificent Seven stocks even if small-cap stocks' performance also improves.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
07-15-24 1723ET
