U.S. stocks closed mostly higher on Monday, buoyed by a strong rally in technology stocks, particularly in the semiconductor sector.
The S&P 500 rose more than 0.5%, while the Nasdaq Composite surged by approximately 1.25%, driven by optimism in the tech industry. However, the Dow Jones Industrial Average ended slightly lower, reflecting broader market volatility.
Tech and Semiconductor Stocks Lead
Chipmakers were the standout performers of the day, boosted by Microsoft’s announcement of an $80 billion investment to develop artificial intelligence-enabled data centers. Shares of Microsoft gained 1%, further fueling enthusiasm in the sector.
Adding to the momentum, Foxconn reported stronger-than-expected fourth-quarter revenue, which lifted sentiment across the semiconductor industry.
Key players in the chip sector saw notable gains:
- Nvidia and Advanced Micro Devices (AMD) climbed more than 3% each.
- Micron Technology surged by an impressive 10.5%.
Optimism in Tech
Market analysts suggest that tech stocks will remain a key driver of equity markets in the near term.
“We’ve been seeing volatility as we have over the last several days,” said Sam Stovall, Chief Investment Strategist at CFRA Research. “The markets started off on a very solid footing and then seemed to give back some of that. But tech continues to be in the lead because of a nice surprise by Foxconn and its fourth-quarter revenues, which sort of triggered an advance by the other semiconductor stocks. So I think investors are starting the year very optimistically toward tech in general and semiconductors in particular.”
Broader Market Movements
While tech was the focal point, other sectors and individual stocks also made headlines:
- Ford and General Motors shares rose following a report suggesting that the incoming administration of President-elect Donald Trump may impose tariffs only on select sectors deemed critical to national or economic security. Trump later refuted the report, adding uncertainty to the market.
- Citigroup climbed 2.5% after receiving a bullish rating from Barclays, building on positive commentary from Wells Fargo last week.
Market Outlook
Despite a bumpy start to 2025, optimism around technology and semiconductors appears to be setting a positive tone for equity markets. Analysts expect continued gains in the tech sector to underpin broader market performance, even as geopolitical and regulatory developments introduce potential headwinds.
The session’s focus on tech highlights its dominant role in shaping market sentiment, with investors eagerly awaiting further updates from key industry players in the weeks ahead.
