Nvidia stock climbs as chipmakers lead rally

nvidia rally
nvidia rally

The S&P 500 and Nasdaq Composite posted gains on Monday. This marked back-to-back wins as Wall Street bounced back from a losing week. The rally was powered primarily by a surge in chipmakers.

The S&P 500 advanced 0.55% to close at 5,975.38. The Nasdaq added 1.24%, closing at 19,864.98. However, the Dow Jones Industrial Average dipped slightly, losing 25.57 points, or 0.06%.

It ended the day at 42,706.56. Chip stocks shined during the session. Nvidia announced record fourth-quarter revenue, boosting its stock by 3.4%.

It closed at a record high. AMD gained about 1.7%. Micron Technology surged by 10.5%.

Sam Stovall, chief investment strategist at CFRA Research, noted the market’s optimism about tech. He said valuations appear restrictive. However, the group will likely rise based on organic earnings growth rather than P/E multiples.

Stovall warned of heightened volatility this year due to various factors. A Washington Post report also supported market sentiment on Monday. It suggested President-elect Donald Trump’s tariff plan would likely cover only critical imports.

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This soothed fears of a global trade war. As a result, shares of major companies gained. Comcast saw an increase of less than 1%.

Charter Communications rose by more than 3%. Investors also closely watched the Federal Reserve’s interest rate projections. An important week for economic data lies ahead.

The December jobs report is due on Friday. The Job Openings and Labor Turnover Survey (JOLTS) will be released on Tuesday.

Chipmakers boost market rally

The December ADP Employment Survey is scheduled for Wednesday. Meanwhile, the 10-year Treasury yield rose to over 4.6%. On the sector front, Information Technology outperformed.

Rallies in artificial intelligence and semiconductor stocks spurred this. Palantir Technologies surged by 12%. Qualcomm rose by more than 9%.

Intel gained at least 4%. Communication services also rose by 1.7%. Materials and consumer discretionary sectors followed with gains of 0.9% and 0.5%, respectively.

However, consumer staples and utilities lagged, declining by at least 0.5%. Real estate dipped by 0.3%. FuboTV saw a substantial jump of over 200%.

This followed the announcement of a transaction with Disney to combine its Hulu + Live TV business with Fubo. Under the new venture, Disney will control around 70% of the new entity. Fubo’s existing management will continue operations but be governed predominantly by a board appointed by Disney.

New ETFs with bitcoin exposure and options are closer to launch in cryptocurrencies. With bitcoin back over $100,000, asset management firms are betting on demand for more complicated ETF types. These combine crypto exposure and derivatives.

Calamos announced a new fund targeting Bitcoin with upside participation. It is designed to appeal to investors wary of Bitcoin’s volatility. Oil and gas exploration stocks were on pace for their 10th straight advance.

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This marked the longest rally in almost five years. The XOP ETF traded higher, rising by up to 2% intraday. Overall, the market showed optimism despite a cautious approach.

This was due to various economic factors and the upcoming Fed meeting. Investors are bracing for potential volatility but remain hopeful for growth, particularly in the tech sector.

Harper Johnson

Harper Johnson stands at the forefront of digital marketing, where she dissects and interprets the impact of online advertising trends, social media dynamics, and search engine algorithms on consumer behavior.

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