The stock market rallied on Monday, with the Nasdaq and S&P 500 leading the way as chip stocks surged.
Despite broad-based sell-off in December, vast majority of global indices closed 2024 in black across asset classes; U.S. large caps reigned supreme, with S&P 500 soaring 25% in 2024 despite December’s 2.4% drop; outside U.S., China was best-performing major equity market with… pic.twitter.com/DA17kFk2gC
— Liz Ann Sonders (@LizAnnSonders) January 6, 2025
Investors were optimistic about the potential for selective tariffs from President-elect Donald Trump’s administration, rather than the broad measures he had previously threatened. Nvidia was a standout performer, with shares climbing nearly 5% to trade around $151.
Stock Market LIVE Updates: Sensex tanks 1150 points, Nifty below 23700; India VIX spikes 15%#StockMarketIndia #StockMarketIndia #Nifty #Sensex https://t.co/oyKsR2XRzv
— ET NOW (@ETNOWlive) January 6, 2025
The company’s CEO, Jensen Huang, is set to deliver a keynote speech at the annual CES in Las Vegas, and investors are anticipating updates on Nvidia’s AI chips and the broader AI market. Other chip stocks also saw gains, with Taiwan Semiconductor rising solidly and the Philadelphia SE Semiconductor index reaching a two-month high. The positive sentiment extended to carmakers, which benefited from reports that Trump’s aides are seeking more targeted tariffs.
In other news, Federal Reserve Governor Michael Barr announced his early resignation, prompting a rise in bank stocks. Citigroup stock also gained following a brokerage upgrade.
Foxconn earnings report analysis
#MarketAlert | Market cap erosion of 8 lac cr (BSE listed stocks)#StockMarket #BSE pic.twitter.com/8q6xtd2Qxr
— ET NOW (@ETNOWlive) January 6, 2025
The Dow Jones Industrial Average rose by 0.16%, while the S&P 500 increased by 0.70% and the Nasdaq Composite climbed by 1.24%. The benchmark 10-year Treasury yield was up around two basis points to hover around 4.62%. Investors are also keeping an eye on the release of the December nonfarm-payrolls report on Friday, which could provide further insight into the state of the economy.
The stock market will be closed on Thursday to mourn the death of former President Jimmy Carter. In the cryptocurrency market, bitcoin prices traded above $101,000 per token, marking the first time it has topped $100,000 since Dec. 19.
This resilience in the face of broader market challenges has caught the attention of many investors. As the week progresses, market participants will be closely watching developments in Washington, D.C., as well as corporate earnings reports and economic data releases. The positive start to the week has set a hopeful tone, but the financial landscape remains dynamic, with potential challenges and opportunities ahead.