US stocks made significant gains on Monday, driven by a surge in the tech sector, particularly among chipmakers. Nvidia saw a 3% increase, while Broadcom and Advanced Micro Devices also rose by 5% and 4%, respectively. The positive momentum comes as investors anticipate a potential year-end rally.
Tech Sector Boosted by Chipmakers
The climb in US stocks was largely propelled by the performance of chip stocks, which helped lift the overall tech sector. This uptick comes after a recent sell-off fueled by the Federal Reserve. Nvidia, Broadcom, and Advanced Micro Devices led the way with notable gains.
AI Influence on Market Trends
Reflecting on the year's market trends, Louis Navellier of Navellier & Associates highlighted the significant impact of artificial intelligence (AI) on investment decisions. The market appears to be heading into the year-end with a continued reliance on AI-driven strategies.
Potential Santa Claus Rally
Investors are now looking ahead to a possible Santa Claus rally, a traditional term used to describe a surge in stock prices during the final trading days of the year and the start of the new year. Sam Stovall of CFRA Research noted that historically, a positive Santa Claus Rally has often preceded strong annual gains for the S&P 500.
Shortened Trading Day Ahead
With the upcoming Christmas holiday, investors should be aware of the shortened trading day on Tuesday, as the New York Stock Exchange will close early at 1 p.m. ET. This abbreviated trading session marks the holiday break for traders and market participants.
Market Snapshot
As of the closing bell on Monday, major US indexes reported the following figures:
– S&P 500: 5,947.07 (+0.73%)
– Dow Jones Industrial Average: 42,906.95 (+0.16%)
– Nasdaq Composite: 19,764.88 (+0.98%)
Other Market News Highlights
Aside from the stock market rally, here are some other key developments:
– US consumer confidence has dipped unexpectedly, nearing recession levels according to the Conference Board.
– Russia's robust economy is putting pressure on trade relations with China.
– MicroStrategy continues its streak of purchasing bitcoins for seven consecutive weeks.
– Despite a 0% recession probability next year, economists warn of other potential concerns.
– Goldman Sachs identifies two defensive sectors in the stock market poised for growth.
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By: jsor@businessinsider.com (Jennifer Sor)
Title: US Stocks Surge as Chipmakers Lead Tech Sector Higher
Sourced From: markets.businessinsider.com/news/stocks/stock-market-today-nvidia-nvda-broadcom-tech-santa-claus-rally-2024-12
Published Date: Mon, 23 Dec 2024 21:05:02 +0000
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