Market Rally Continues as Tech Stocks Soar
The stock market kicked off the week on a high note, with tech stocks leading the charge. The Nasdaq composite index rose nearly 1%, while the S&P 500 index gained 0.7%. The Dow Jones Industrial Average also edged higher, erasing earlier losses to close up almost 0.2%.
Semiconductor Stocks Shine
Semiconductor stocks were among the top performers, with shares of Nvidia and Broadcom surging more than 3% and 5%, respectively. The gains were driven by optimism about the sector’s growth prospects.
Meta and Tesla Lead the Way
Social media giant Meta and electric vehicle maker Tesla also made significant gains, helping to lift the broader market. Meta’s shares rose more than 2%, while Tesla’s stock gained over 3%.
Fed’s Interest Rate Policy in Focus
The Federal Reserve’s interest rate policy remains a key focus for investors. While the Fed hinted at keeping rates higher for longer, the latest inflation data showed a cooling trend. Investors are now betting on the Fed holding rates steady next month, with a 50-50 chance of a cut or hold in March.
Consumer Confidence Takes a Hit
US consumer confidence took a hit in December, registering its largest month-over-month decline since November 2020. The decline was driven by growing uncertainty about the economic outlook in the year ahead.
Economic Data in Focus
This week’s economic data will provide a breather for Wall Street, with a light schedule of releases. Markets will close at 1 p.m. ET on Tuesday, followed by Wednesday’s Christmas holiday.
Other Market Movers
In other market news, shares of Rumble soared over 100% after a $775 million investment from crypto firm Tether. Nordstrom is also going private in a deal valued at $6.25 billion.
Bitcoin Slumps
Bitcoin extended its losses, dropping more than 2.5% over the past 24 hours to touch $93,000 per token. The cryptocurrency has fallen over 10% from its all-time record highs.
Sector Performance
Tech and communication stocks rose modestly, while the rest of the S&P 500 sectors struggled to gain traction. Chip giant Nvidia increased 2%, while social media platform Meta also gained more than 2%.
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