Market Momentum Shifts into High Gear
AI Stocks Lead the Charge
Monday’s trading session got off to a slow start, but as the day progressed, the market found its footing, thanks in large part to a surge in AI stocks. Foxconn, the world’s largest electronics maker, reported record-breaking revenue for its fourth quarter, sparking a rally that lifted the Dow Jones Industrial Average by 365 points, or 0.8%, in afternoon trading.
Foxconn’s Revenue Soars
The Taiwanese company, formally known as Hon Hai Precision Industry, reported revenue of $2.13 trillion in New Taiwan dollars ($65 billion) for the October to December period. Despite a month-over-month decline in November and December, Foxconn’s revenue grew in each month compared to the same period last year, resulting in a 15% year-over-year increase.
Semiconductor Stocks Get a Boost
The news of Foxconn’s revenue and first-quarter forecast sent shares of semiconductor companies soaring. Taiwan Semiconductor Manufacturing Company, which produces about 90% of the world’s chips, saw its stock rise almost 5% in pre-market trading in New York. Nvidia stock climbed more than 2%, building on its impressive gains in 2024. Advanced Micro Devices and Intel also saw their shares rise, by 3% and 1%, respectively.
Cryptocurrency Market Sees a Surge
Bitcoin reclaimed the $100,000 level, climbing 4% in a single day, as investors grew optimistic about its future amid political and regulatory shifts. The rally wasn’t limited to Bitcoin, as other major cryptocurrencies, such as Ether, Solana, and Dogecoin, also gained traction. Crypto stocks followed suit, with Coinbase shares jumping 6.3% and MicroStrategy rising 5.5% following reports of its latest Bitcoin purchase.
MicroStrategy’s Bitcoin Holdings Soar
The business intelligence firm bought 1,070 coins for approximately $101 million, bringing its total Bitcoin holdings to 447,470 coins, valued at $45.67 billion at the current price level. This acquisition marks a significant milestone for MicroStrategy, which has been aggressively investing in Bitcoin.
Market Optimism Abounds
As the market continues to gain momentum, investors are increasingly optimistic about the prospects for AI stocks and cryptocurrencies. With the “January effect” in full swing, fresh capital is flowing into the market, driving up prices and fueling a sense of excitement among investors.
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