S&P 500 and Nasdaq anticipate tech gains

Kaityn Mills
4 Min Read
Tech Gains

The S&P 500 and Nasdaq Composite posted back-to-back gains on Monday, driven by a surge in chipmakers. Nvidia shares jumped 3.4%, closing at a record high, after the company announced record fourth-quarter revenue. Advanced Micro Devices (AMD) gained about 1.7%, while Taiwan Semiconductor Manufacturing Company (TSMC) advanced 10.5%.

The Philadelphia Semiconductor Index surged more than 3%. “The market is optimistic about tech, anticipating earnings growth of 20% this year compared to 12.8% for the broader market. However, valuations appear restrictive,” said CFRA Research chief investment strategist Sam Stovall.

He added that heightened volatility is expected this year due to expensive valuations, adjustments to interest rate forecasts, and earnings projections, along with a new presidential administration. Market sentiment was also boosted by a Washington Post report stating President-elect Donald Trump’s tariff plan would cover only critical imports. Trump’s campaign had called for tariffs as high as 10%-20%.

Shares of companies potentially impacted by tariffs, such as Caterpillar and Boeing, rose by less than 1% and more than 3%, respectively. Investors began the week with lingering concerns about the Federal Reserve’s interest rate projections. The New York Stock Exchange will be closed Thursday to mourn the death of former President Jimmy Carter.

The 10-year Treasury yield rose to over 4.6% ahead of important economic reports. The December jobs report, due Friday, is one of the last key data points before the Fed meeting at the end of the month.

Tech surge boosts market optimism

Investors are also watching the Job Openings and Labor Turnover Survey (JOLTS) on Tuesday and the ADP Employment Report on Wednesday. With Bitcoin back over $100,000, asset management firms are preparing to launch ETFs that combine crypto exposure with derivatives. Calamos announced it will launch a fund targeting Bitcoin exposure along with some upside participation, determined by market pricing at launch.

American Airlines shares jumped more than 4% after TD Cowen set a new high price target for the carrier’s stock, increasing it by $8 to $25. TD Cowen’s Tom Fitzgerald cited easing headwinds and optimism for the new year, upgrading shares to buy from hold. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) traded higher on Monday, rising as much as 2% intraday, nearing its 10th straight gain, the longest rally since April 2020.

The ETF’s five largest positions are Chevron, ExxonMobil, ConocoPhillips, EOG Resources, and Pioneer Natural Resources. Information technology was the best-performing sector in the S&P 500, rallying 1.8% during afternoon trading. Gains were driven by a strong performance in artificial intelligence and semiconductor stocks.

Nvidia surged 12%, AMD gained more than 9%, and Intel Corp added at least 4%. Communication services also outperformed, rising 1.7%. FuboTV shares surged more than 200% after announcing a deal with Disney to combine its Hulu + Live TV business with Fubo.

Disney will own around 70% of the new business, while Fubo’s existing management team will continue to operate the venture, overseen by a board with a majority appointed by Disney. The new company is projected to be well-capitalized and cash-flow positive.

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Kaitlyn covers all things investing. She especially covers rising stocks, investment ideas, and where big investors are putting their money. Born and raised in San Diego, California.