U.S. stock markets concluded Monday’s trading session with mixed results, largely driven by a surge in semiconductor stocks as investors looked ahead to important labour market data set to be released later this week.
The Dow Jones Industrial Average slipped by 25.57 points, or 0.06 per cent, finishing at 42,706.56. In contrast, the S&P 500 gained 32.91 points, or 0.55 per cent, to close at 5,975.38, while the Nasdaq Composite Index rose by 243.30 points, or 1.24 per cent, reaching 19,864.98.
Among the 11 primary sectors of the S&P 500, seven ended in the red, with real estate and utilities leading the declines, dropping by 1.40 per cent and 1.09 per cent, respectively. Conversely, communication services and technology sectors led the gainers, increasing by 2.13 per cent and 1.44 per cent.
Chipmakers experienced significant gains following Foxconn’s announcement of record revenue for the fourth quarter, which fostered optimism in the sector. Nvidia saw a rise of 3.43 per cent ahead of a scheduled speech by CEO Jensen Huang at the CES convention in Las Vegas. Broadcom climbed 1.66 per cent, while Micron Technology surged by 10.45 per cent. The VanEck Semiconductor ETF also rose by 3.32 per cent, reflecting robust strength across the industry.
“The market appears optimistic about tech, anticipating earnings growth of 20 per cent this year compared to 12.8 per cent for the broader market,” remarked Sam Stovall, chief investment strategist at CFRA Research. “However, valuations could be a constraint, suggesting that growth will need to stem from organic earnings rather than price-to-earnings multiples.”
In political news, a report from The Washington Post stirred some market intrigue, indicating that President-elect Donald Trump’s team may consider selective tariffs on critical imports, rather than applying blanket measures. Trump later dismissed the report as “Fake News” on Truth Social, labelling it “wrong” and misleading.
Yields on the 10-year U.S. Treasury note edged higher, approaching 4.6 per cent, reflecting cautious sentiment as traders evaluate the economic landscape.
Attention is now turning to forthcoming economic data, notably the December jobs report set for release on Friday, which will serve as a crucial input for the Federal Reserve ahead of its upcoming meeting. In the meantime, investors are also focused on the Job Openings and Labor Turnover Survey (JOLTS) due on Tuesday and the ADP Employment Survey on Wednesday.Share
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