Market Momentum Builds as Chip Stocks Shine
The first full week of 2025 is off to a strong start, with US stocks surging on Monday as chip names take center stage. The S&P 500 rose 0.8%, while the Dow Jones Industrial Average added 0.3%. The tech-heavy Nasdaq Composite led the gains, surging 1.2%, following a tech-led rally on Friday.
Chip Stocks Rally on Record Revenue and Strong Sales Forecast
Nvidia (NVDA) server partner Foxconn (2317.TW, HNHPF) reported record revenue and a strong sales forecast, boosting optimism for AI-fueled growth. Shares of Nvidia and peer AMD (AMD) rose over 2% in early trading, while Micron Technology (MU) soared more than 8%. The upbeat mood is expected to continue as investors await CEO Jensen Huang’s keynote speech at the CES tech conference later Monday.
Focus Shifts to Nvidia’s Blackwell Chip
Investors will be listening for signs that Nvidia’s new Blackwell chip has overcome supply glitches. Bank of America semiconductor sector analyst Vivek Arya is bullish on Nvidia, reiterating a “Buy” rating with a price target of $190 per share.
Economic News and Earnings
The week ahead is marked by the release of key economic data, including the December nonfarm payrolls report on Friday. Meanwhile, none of the major companies are scheduled to report earnings on Monday. However, investors will be keeping an eye on the S&P Global US manufacturing and composite PMIs, as well as factory orders and durable goods orders.
Tariff Uncertainty Eases
A report from The Washington Post suggests that President-elect Donald Trump’s team is exploring more limited tariffs than anticipated, which could ease uncertainty in the market. The dollar index, which has traded to two-year highs since Trump’s election win, dropped sharply early Monday before paring back some of its losses.
Corporate News: Disney and Fubo
On the corporate front, Disney (DIS) is reportedly close to a deal with Fubo to merge its Hulu live TV business into Fubo’s service. Shares in Disney were little changed in early morning trade.
Market Outlook
As the first full week of 2025 gets underway, investors are optimistic about the prospects for tech-led growth. With the chip sector leading the charge, all eyes will be on Nvidia’s keynote speech and the release of key economic data later in the week.
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