US stocks surged on Monday, driven by a rally in chipmakers that bolstered the tech sector. Nvidia saw a 3% increase, while Broadcom and Advanced Micro Devices climbed by 5% and 4%, respectively. The trading week will be abbreviated, with the New York Stock Exchange closing early on Tuesday.
The rise in US stocks on Monday was spearheaded by chip stocks propelling the tech sector upwards as investors kept a watchful eye on a potential year-end rally. The three major benchmark indexes all closed in positive territory, with the tech-heavy Nasdaq Composite registering a nearly 1% increase.
Chipmakers played a crucial role in lifting tech shares, making up ground lost in last week’s selloff triggered by Federal Reserve actions. Nvidia closed the day with a 3% gain, while Broadcom and Advanced Micro Devices surged by 5% and 4% respectively.
Louis Navellier, the chief investment officer of Navellier & Associates, remarked, “It’s been an AI-driven year, and it appears that’s how it is headed into the year-end.” Meanwhile, investors are anticipating a potential Santa Claus rally, a term denoting a surge in stock prices during the final trading week of the year and the first two days of the new year.
Should this rally materialize, it could signal another positive year for the stock market, as highlighted by Sam Stovall, chief investment strategist at CFRA Research. Stovall noted in a report, “A positive Santa Claus Rally has preceded a 10.4% average annual gain for the S&P 500 since WWII.” However, he cautioned that a decline during this seven-day period resulted in the S&P 500 achieving an average annual gain of only 5.7%, occurring just 32% of the time.
With the New York Stock Exchange closing early on Tuesday for the Christmas holiday, trading will conclude at 1 p.m. ET. As of Monday’s closing bell at 4:00 p.m., the US indexes stood as follows:
– S&P 500: 5,947.07 (+0.73%)
– Dow Jones Industrial Average: 42,906.95 (+0.16%)
– Nasdaq Composite: 19,764.88 (+0.98%)
In other news:
– US consumer confidence unexpectedly dipped to levels close to recession territory, according to the Conference Board.
– Russia’s overheated economy is putting pressure on one of Moscow’s key trading links with China.
– MicroStrategy has sustained its bitcoin buying spree for seven consecutive weeks.
– The likelihood of a recession next year stands at 0%. Here are the areas to focus on instead, according to a prominent economist.
– Goldman Sachs identifies two defensive sectors of the stock market poised for growth.
For more details, you can read the original article on Business Insider.
