Market Momentum Builds as Chip Stocks Soar
The first full week of 2025 is off to a strong start, with US stocks rising on Monday as chip names surge and investors await key monthly jobs data later this week. The S&P 500 is up about 0.4% in afternoon trade, while the Dow Jones Industrial Average is flat after being higher for most of the session. The tech-heavy Nasdaq Composite leads the gains, adding about 1%, after a tech-led rally on Friday.
Chip Stocks Rally on Foxconn’s Record Revenue
Chip stocks are driving the market’s upward momentum, with shares of Nvidia climbing about 4% and peer Micron Technology rising over 10%. The rally follows a record revenue and strong sales forecast from Nvidia server partner Foxconn, which has boosted optimism for AI-fueled growth.
Nvidia CEO Jensen Huang Takes Center Stage
All eyes are on Nvidia CEO Jensen Huang, who will deliver a keynote speech at the annual Consumer Electronics Show (CES) in Las Vegas later today. Investors are anticipating updates on the rollout of the company’s Blackwell chips, which analysts say will drive a massive new cycle of demand despite fears over an AI spending slowdown.
Disney and FuboTV Announce Major Media Deal
In other corporate news, Disney has confirmed it will combine its Hulu + Live TV business with sports streamer FuboTV in the first major media dealmaking move of 2025. Fubo shares soared over 200%, while shares in Disney climbed around 1%.
Bitcoin Breaks $100,000 Barrier
Meanwhile, bitcoin prices have traded above $101,000 per token, marking the first time the leading cryptocurrency has topped $100,000 since December 19.
Federal Reserve’s Top Banking Regulator to Step Down
In a surprise move, the Federal Reserve’s top banking regulator, Michael Barr, will step down from his position in February. Barr’s departure comes as the people in Trump’s orbit are floating dramatic ideas that would remake the way US banks are regulated during the next Trump administration.
US Dollar Index Drops on Tariff News
The US dollar index has dropped sharply after the Washington Post reported that President-elect Donald Trump’s team is exploring more limited tariffs than anticipated. The index later pared some of its losses after Trump called the report “wrong” in a social media post.
Market Themes
One of the key themes of the past month of market action has been Big Tech stocks keeping the market afloat while other stocks have stumbled. A similar trend of megacap tech outperformance has played out in earnings revisions too. DataTrek co-founder Jessica Rabe notes that over the past 90 days, the combination of Apple, Nvidia, Microsoft, Alphabet, Meta, Broadcom, and Tesla have seen earnings revised up by an average of 5.1%. Conversely, in the same time frame, the S&P 500 has seen earnings revised down by 2.7% while the 10 largest non-tech stocks have seen earnings revised down by 2.8%.
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