The Dow Jones Industrial Average closed at a record high on Monday as investors tried to move on from a steep sell-off earlier this month.

The 30-stock index closed up 65.44 points, or 0.16%, at 41,240.52. Earlier in the day, it climbed more than 200 points, or 0.6%, to set a new intraday record, then pulled back from that level. The S&P 500 slipped 0.32% to 5,616.84, while the Nasdaq Composite sank 0.85% to end the day at 17,725.76.

Traders also appeared to be rotating out of tech and into other areas of the market. The S&P 500 energy sector was up more than 1%, while tech fell 1%. Nvidia closed down 2.3% ahead of its earnings report due Wednesday afternoon, an event traders are harping on as key to the market and the artificial intelligence enthusiasm that has driven this bull market. Other chip stocks such as Broadcom and Micron were also lower.

"I think there's a little angst in the technology sector about the upcoming Nvidia earnings," Baird analyst Ross Mayfield told CNBC. "The market is in a pretty healthy place, but it is really hard to make big advances higher if tech is a laggard — it's just too big of a weight in the index — and right now, it is acting like a laggard."

The market kicked off August under pressure, as concerns over a possible recession, and the unwind of a popular hedge fund trade linked to the Japanese yen, pulled stocks off their record levels. The S&P 500 lost 3% on Aug. 5, its biggest one-day loss since 2022. The Dow also had its worst sell-off in about two years that day, plunging more than 1,000 points.

Since then, though, expectations of lower Federal Reserve interest rates and improving U.S. economic data have sent stocks soaring. The S&P 500 has surged 8% since Aug. 5 and was less than 1% away from its record high set in mid-July, while the Dow has soared more than 6%. The rebound has broadened out to the wider market, with the small-cap Russell 2000 also rising following Powell's comments.

Stocks are coming off a strong week that was highlighted by comments from Fed Chair Jerome Powell that laid the groundwork for interest rate cuts. Wall Street has been anxiously awaiting a rate cut, especially in light of some worrying economic data that sparked a sell-off at the beginning of August and worried investors that elevated borrowing costs could damage the U.S. economy.

Powell did not indicate when, or by how much, interest rates would be potentially lowered. Traders remain unanimous in their forecast for a rate cut at the Fed's September policy meeting, however, per the CME Group's FedWatch Tool.

"We think they'll do 25 basis points in September, November and December, because they want the market to know that they are not behind the curve, but at the same time, they want to ensure that they are not going to go too quickly into a cutting mode," said Sam Stovall, chief investment strategist at CFRA Research.

Dow closes at record high

The Dow Jones Industrial Average closed at a record high Monday afternoon.

The 30-stock index closed 65.44 points higher, or 0.16%, to finish at 41,240.52. On the other hand, the S&P 500 shed 0.32% to finish at 5,616.84, while the Nasdaq Composite slipped 0.85% and settled at 17,725.76.

— Lisa Kailai Han

Wolfe Research recommends investors stick with dividend growth strategies

With a looming rate cut on the horizon, Wolfe Research is recommending investors pivot now into dividend growth strategies.

"Among the dividend themes we track, the combo of high dividend growth and high free cash flow yield has performed best YTD and remains our favorite dividend theme," the firm wrote in a Monday note. "Analyzing past Fed rate cutting cycles, dividend growth outperformed higher dividend yielding strategies."

The firm noted that the dividend aristocrats, or stocks that have 25 years or more of consecutive dividend growth, performed the best.

— Lisa Kailai Han

Piper Sandler: Magnificent 7 is becoming the 'Lag Seven'

Small caps outperformed megacap tech on Friday, creating the latest sign for Piper Sandler that the market rally is expanding beyond a concentrated group.

The tech-heavy Nasdaq Composite finished Friday's session up about 1.5%. But the small cap-focused Russell 2000 jumped more than 3% as these names, which have struggled for much of 2024, saw outsized gains.

"This further proved that the 'Mag Seven' is becoming the 'Lag Seven' as market participation broadens on this recovery rally," chief market technician Craig Johnson wrote to clients, using shorthand for the "Magnificent Seven."

— Alex Harring

An options play idea ahead of Nvidia's earnings from Bank of America

Investors who are nervous about Nvidia's earnings report on Wednesday might want to look at a broader defensive strategy, according to Bank of America.

Gonzalo Asis, a derivatives strategy analyst at the firm, said investors should look at buying downside protection via options on the SPDR S&P 500 ETF Trust (SPY) ahead of the chipmaker's report.

"NVDA results have been a key driver of equity indices … and investors may be underpricing the risk of a disappointment," the note said.

— Jesse Pound

Expect elevated volatility in the near term, says Nomura

Although Wall Street reacted bullishly to Federal Reserve Chair Jerome Powell's Jackson Hole symposium speech, Nomura strategist Yoshitaka Suda believes there is still more volatility ahead for the market.

"It seems likely that the market is in for a bumpy ride of ups and downs as investors react to surprises in the incoming economic indicators," Suda wrote in a Monday note.

One indication of more volatility is the Merrill Lynch Option Volatility Estimate (MOVE) Index, which measures 1 month implied volatility in U.S. bonds. The MOVE index still remains above the key 100 level despite uncertainty surrounding inflation having significantly receded following the Jackson Hole speech.

"The MOVE index ought normally to have fallen well below 100 by this point. And while the VIX has been settling back down for a while now, we would not be surprised to see it notch upward again," Suda said.

The event premium the market is currently assigning to the presidential election is lower than it was in the same period in 2016 and 2020, but Suda believes this could rise as the election nears.

"It should be recalled that during the previous two presidential election cycles, the accumulation of long gamma exposure picked up starting with the arrival of autumn," the strategist said.

— Hakyung Kim

The market outlook appears to be 'improving,' Oppenheimer strategist says

Stocks could continue to broaden out after Federal Reserve Chair Jerome Powell's dovish comments last week suggest everything appears to be going to plan, according to Oppenheimer Asset Management.

John Stoltzfus, chief investment strategist at the firm, said the lower revisions to the jobs data added to the Fed's conviction that the economy is slowing, but not falling into a recession, clearing the way for interest rate cuts.

"While there never is an 'all clear' signal sounded over the markets more things seem to be improving even as uncertainty remains on the landscape," he wrote Monday.

He expects the Fed could cut by a quarter percentage point in September, followed by two more as needed in November and December, a move that should continue to support equities.

Of note, he expects the market will broaden out, though information technology could continue to lead higher. He is anticipating periodic rallies from the small-cap and midcap space.

— Sarah Min

Apple plans Sept. 9 event

Apple said it will hold an event at its headquarters Monday, Sept. 9. The company is widely expected to announce its latest iPhone and Apple Watch models.

Many expect the latest iPhone models to include larger screens and an updated camera. The new iPhones will also likely be able to run "Apple Intelligence," the company's artificial intelligence initiative announced earlier this year.

The event, held in Cupertino, California, will be streamed on the company's website and via YouTube.

The stock was down less than 1% during midday trading.

— Samantha Subin, Kif Leswing

Back-to-school trends are not heading in Nike's favor

Stifel analysts have trimmed their forecast for Nike's North American business after reviewing results from a back-to-school survey, which shows fading popularity for its Jordan brand, Air Max 270 and VaporMax shoes.

Kids are favoring "comfort-oriented 'dad' shoes," which include New Balance and Asics, and "terrace styles" such as Adidas' Samba, Gazelle and Campus shoes, according to analyst Jim Duffy. On Holdings' ON brand and Deckers' Hoka brands are making modest gains off a much smaller base, he said in a research note.

Nike shares are down 22% year to date. However, the stock has gained 14% since hitting a 52-week low during the Aug. 5 market sell-off. Meanwhile, On shares hit a 52-week high in trading Monday. Shares are up 68% year to date, while Deckers' stock has gained 41% since January. Adidas' U.S.-listed shares are up around 20% during the same period.

— Christina Cheddar Berk

Icahn Enterprises files to sell up to $400 million worth of shares

Famed investor Carl Icahn's Icahn Enterprises filed to sell up to $400 million depository units through an "at-the-market" offering program, according to a regulatory filing. The filing said the firm intends to use any net proceeds from the offering to fund potential acquisitions and for company purposes.

Shares of Icahn Enterprises dropped more than 6% Monday, bringing its 2024 loss to more than 13%. The stock plunged 66% last year.

Last week, Icahn and IEP settled with the U.S. Securities and Exchange Commission, paying a combined $2 million in fines over the failure to disclose as much as $5 billion in margin loans that were backed by Icahn's stake in the eponymous company.

— Yun Li

Big drops for PDD Holdings, SolarEdge highlight midday movers

Here are some of the stocks making the biggest moves in midday trading Monday:

• PDD Holdings — Shares of the Temu parent company sank nearly 30% on disappointing second-quarter results.
• Icahn Enterprises — Carl Icahn's investment firm saw shares slide nearly 12% after Icahn Enterprises filed with the U.S. Securities and Exchange Commission to sell up to $400 million depository units through an "at-the-market" offering program.
• SolarEdge Technologies — The green energy stock fell about 8% after announcing a change of CEO.

— Jesse Pound

NASA opting for SpaceX adds to list of Boeing's challenges, signals concern for its manned space business, BofA says

NASA's decision to call on SpaceX to bring home the two astronauts stranded on a Boeing Starliner spacecraft is yet another negative for Boeing — and could hint at an end to its manned space flight business, Bank of America analyst Ronald Epstein said.

"This incident could negatively affect Boeing's reputation with NASA and it's unclear if or when the company will have another opportunity to bring astronauts to Space," Epstein said in a Monday note. "We would not be surprised if Boeing were to divest the manned space flight business."

Epstein noted NASA program manager Steve Stich's commentary that "it's a matter of technical expertise and our experience that we have to balance," which the BofA analyst said suggests gaps in Boeing's technical workforce and the firm's view that Boeing has strayed from its engineering foundations.

"We maintain our Neutral rating on Boeing, as we continue to see the company as being in limbo as it works through operational challenges under new leadership," Epstein said, adding that this incident piles on to Boeing's slate of challenges — beyond its financial and execution issues across its commercial and military aircraft programs — the company's new CEO has to work through.

Epstein kept his 12-month $200 price target, which suggests 14.3% potential upside for the stock.

— Pia Singh

U.S. crude oil jumps more than 3% on Libya production halt

U.S. crude oil jumped more than 3% after reports that Libya was halting production.

The U.S. benchmark rose $2.67, or 3.62%, to $77.50 per barrel, while global benchmark Brent jumped $2.49, or 3.15%, to $81.51 per barrel.

Libya's eastern government in Benghazi said Monday that oil production and exports in the North African country would shut down, amid a dispute with the internationally recognized western government in Tripoli over who should lead the central bank.

The Middle East is also on edge after Israel launched a wave of airstrikes against Hezbollah in Lebanon, and the Iran-backed militia group fired missiles at Israel.

— Spencer Kimball

PDD Holdings heads for worst day ever

U.S.-listed shares of PDD Holdings plummeted nearly 30% during Monday's session, putting the e-commerce stock on pace for its worst day on record.

The declines came after the Temu parent company posted disappointing second-quarter results. PDD reported revenue of 97.06 billion yuan, falling short of a FactSet estimate of 100.17 billion yuan. The company said it anticipates pressures from heightened competition.

Shares have plummeted more than 33% this year.

— Samantha Subin

Semiconductor stocks stumble, raising eyebrows of technical analyst

The VanEck Semiconductor ETF (SMH) dipped 2% on Monday, and that could be an alarm bell for chart analysts who were already worried about the chip sector and its effect on the broader market.

Wolfe Research's Rob Ginsberg highlighted the SMH in a note to clients over the weekend, saying that a rebound for the fund appeared to have lost steam near a key technical indicator.

"SMH is stalling out at its 50-day and beginning to roll back over. If the group starts to slip again, is the market strong enough to withstand it? We are doubtful," the note said.

— Jesse Pound

Petrobras rallies on heels of Morgan Stanley upgrade

U.S.-listed shares of Petrobras headed for their best day in about a year after an upgrade from Morgan Stanley.

The Brazilian oil company's American depositary receipts popped nearly 6% in Monday morning trading. If that holds through session close, it will mark the stock's biggest one-day gain since a 7.5% jump in August 2023.

Monday's rally follows the Morgan Stanley promotion to overweight from equal weight. CNBC Pro subscribers can click here to read more about the call, which focuses on dividend opportunities.

— Alex Harring

Dow notches intraday high

The Dow touched a fresh all-time intraday high on Monday, the latest milestone in the market's recovery rally.

The blue-chip average climbed more than 200 points at its highest point in the session, reaching never-before-seen levels. To reach this new record, the Dow traded nearly 7% above the level it closed at following the global market rout on Aug. 5.

— Alex Harring

SolarEdge Technologies CEO steps down as company struggles to recover

SolarEdge Technologies CEO Zvi Lando has stepped down, as the company struggles to recover from a downturn in the residential solar market.

"The road to a full recovery of SolarEdge is still ahead of us and to drive this recovery at a fast pace requires new energy and leadership," Lando said in a statement. "As such, I have decided to resign from my position as CEO."

Chief Financial Officer Ronen Faier will serve as interim CEO effective today. The company's senior vice president of finance, Ariel Porat, will take over the reins as CFO.

Lando will remain a member of SolarEdge's board of directors.

SolarEdge shares were down nearly 7% in morning trading. The stock has fallen 69% this year as the company tries to dig its way out of an inventory backlog amid depressed demand due to high interest rates.

— Spencer Kimball

Stocks open flat to start the week

The major stock indexes opened unchanged to kick off the new trading week.

The S&P 500 rose 0.1%, while the Dow Jones Industrial Average gained 0.2%, or 81 points. The Nasdaq Composite traded just under flat.

— Lisa Kailai Han

Durable goods orders jump in July, boosted by transportation

Orders for long-lasting items such as appliances, aircraft and computers surged in July, pushed by demand for transportation equipment, the Census Bureau reported Monday.

So-called durable goods orders soared by 9.9%, reversing a downwardly revised 6.9% slump in June and easily topping the Dow Jones estimate for an increase of 4%. However, excluding the vital transportation category, orders actually declined 0.2%, as the sector posted a 34.8% increase.

Excluding defense, orders rose 10.4% after declining 7.5%.

— Jeff Cox

Stocks making the biggest moves premarket

Check out the companies making headlines before the bell:

• Boeing — Shares fell more than 1% after NASA announced Saturday it will turn to SpaceX to bring back two astronauts from the International Space Station. Boeing has said its Starliner was safe for the astronauts to fly home in case of an emergency — despite multiple delays to the return. NASA said its risk evaluation was different to that of Boeing's.
• PDD Holdings — The Temu parent tumbled 16% on disappointing second-quarter results. The China-based online retailer posted revenue of 97.06 billion yuan versus a FactSet estimate of 100.17 billion yuan. Management said pressures on revenue growth are likely to continue on increased competition and other headwinds. 
• BJ's — Shares rose more than 1% after JPMorgan upgraded the wholesaler to neutral from underweight as the company reinvests in its business and benefits from consumers trading down.

The full list can be found here.

— Hakyung Kim

UBS sees S&P 500 rising by 5% into year-end

UBS believes stocks could continue their rise from here in the face of impending interest rate cuts, despite potentially mounting geopolitical tensions in the Middle East and volatility around the U.S. presidential election in November.

"We see room for US equities to rise further in a constructive environment driven by Fed rate cuts, the growth story around artificial intelligence (AI), and healthy earnings growth," the bank wrote in a Monday note. While tech stocks sold off in early August and may have to contend with further volatility, UBS believes the AI growth story still remains intact.

The bank added its belief that the S&P 500 could rise to 5,900 by the year's end, which translates to an increase of just under 5%.

— Lisa Kailai Han

The time has come to shift to defensive value plays, Oppenheimer says

Market signals are now indicating that it may be time to shift to defensive value from cyclical value positions, according to Oppenheimer.

"Currently, the rate breakdown and turn toward low-volatility leadership lead us to believe lower-economic activity should persist, and in turn, act as a small-cap headwind," the financial firm wrote in a recent note. "Against a core position in large-cap growth, we also recommend shifting to defensive value from cyclical value."

With this shift toward low volatility in mind, Oppenheimer said it was now raising its REITs category to market weight, while also lowering energy stocks to underweight.

— Lisa Kailai Han

Rate-cut outlook may dampen in coming weeks, Yardeni warns

Expectations for a Federal Reserve rate cut in September could take a leg lower in the coming weeks, according to Ed Yardeni of Yardeni Research.

"Stronger-than-expected economic news is likely in coming weeks, in our opinion. If so, that might dampen rate-cut expectations," he said in a note.

Yardeni's comments come after Federal Reserve Chair Jerome Powell said Friday that "the time has come" for the central bank to start lowering rates. He didn't specify when — or by how much — rates would ease.

"Powell's speech at Jackson Hole on Friday was unambiguously dovish, as we observed in that day's QuickTakes. It was also unambiguously bullish for the stock market because it confirmed widespread expectations that September's cut in the federal funds rate is in the bag and will be followed by several more cuts. However, the stock market may have discounted most of these expectations," said Yardeni.

— Fred Imbert

Stock futures open little changed on Sunday

Stock futures were near the flatline on Sunday as investors enter a fresh week of trading with reassurance that interest rate cuts are forthcoming.

S&P 500 futures gained 0.08%, while Nasdaq 100 futures added 0.17%. Futures tied to the Dow Jones Industrial Average advanced 22 points, or 0.05%.

— Brian Evans