U.S. markets started the week on a high note as technology and semiconductor stocks surged, driving the Nasdaq Composite higher. The S&P 500 also saw gains, buoyed by robust earnings reports and easing concerns over potential U.S. tariff policies under the incoming Trump administration.
Key Market Highlights
- Nasdaq Leads the Rally
The tech-heavy Nasdaq Composite rose by 1.51%, driven by strong performances in chip stocks such as Nvidia, Advanced Micro Devices (AMD), and Micron Technology. - S&P 500 and Dow Jones Gain
- S&P 500: Up by 1.03%, closing at 6003.43.
- Dow Jones Industrial Average (DJIA): Gained 0.59%, ending at 42985.62.
- Global Chip Industry Boost
- Taiwan’s Foxconn reported record quarterly revenue, fueled by increased demand for servers powering AI technologies.
- Nvidia and other chipmakers traded higher on optimism surrounding continued demand for AI-related hardware.
- Treasury Yields Climb
- The yield on the 10-year Treasury rose to 4.614%, reflecting cautious optimism in bond markets.
- The 30-year Treasury yield hit a 14-month high at 4.855% during early trading.
- Canadian Dollar Strengthens
The Canadian dollar appreciated by 0.55% against the U.S. dollar amid political developments, including Prime Minister Justin Trudeau’s resignation.
Donald Trump’s Reported Tariff Plans
Markets reacted positively to a report suggesting the Trump administration may scale back tariff policies:
- Washington Post Report: Claimed the administration is considering imposing global tariffs only on critical imports, rather than across the board.
- Impact on the Dollar: The U.S. dollar weakened, pushing the WSJ Dollar Index down by 0.41%.
- European Markets: Stocks and currencies in Europe rose on the news, with the Stoxx Europe 600 up 1.2%.
Other Market Developments
- Crypto Surge:
- Bitcoin surged past the $102,000 mark, buoyed by MicroStrategy’s announcement of a $101 million Bitcoin purchase during the last two trading days of 2024.
- Uber and Lyft on the Rise:
- Uber shares jumped by 2.91%, closing at $66.47, after the company announced a $1.5 billion accelerated share-repurchase program.
- Lyft also gained 1.89%, trading at $14.54, as both companies prepared for a future dominated by autonomous vehicles.
- Smithfield Foods Files for IPO:
- The largest U.S. pork producer, owned by China’s WH Group, filed for an initial public offering (IPO), marking a significant development in the agriculture and food industries.
Global Market Overview
- South Korea’s Kospi: Rose 1.9%, benefiting from the global chip rally.
- Japan’s Nikkei 225: Fell 1.5%, reflecting localized pressures in the Tokyo market.
- Stoxx Europe 600: Climbed 1.2%, supported by optimism over U.S. tariff policy adjustments.
The U.S. stock market began the week with strong momentum, driven by gains in the tech sector and optimism over potential policy shifts under the Trump administration. As chip stocks lead the charge and cryptocurrency markets gain steam, investor sentiment appears cautiously optimistic. Global markets are reacting positively, but uncertainties around tariffs and inflation remain key factors to watch in the coming weeks.