Nasdaq, S&P 500, Dow jump as Nvidia leads chip stocks higher

Nvidia (NVDA) stock extended its gains last week, with shares poised to surpass their previous all-time closing high.

The stock rose about 5% to trade at about $151. The chip brand reached its previous record close of $148.88 per share on November 7.

These positive fluctuations come as Nvidia CEO Jensen Huang prepares to deliver a keynote speech at the annual Consumer Electronics Show (CES) in Las Vegas in 6:20 PM PT on Monday. The address will be broadcast live on Facebook, YouTube, LinkedIn and other sites.

Investors are anticipating more updates on the rollout of the company’s Blackwell chips, which analysts say will drive a massive new cycle of demand despite concerns about a slowdown in AI spending.

Read more here.

The US Dollar Index (DX-Y.NYB), pulling away from a recent two-year high, fell on Monday afterward The Washington Post reported President-elect Donald Trump’s tariff plans may be less expansive than initially thought.

Trump quickly Response to social truthHe considered the report “wrong.” The US Dollar Index (DX-Y.NYB), which fell as much as 1%, pared some losses and was down about 0.5% at last check. The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) both rose more than 1%.

In a note to clients late Sunday, Mike Wilson, chief investment officer at Morgan Stanley, wrote that the dollar index had risen to a level that “has the potential to impact stocks with greater exposure to foreign sales.” As we noted last week, this group includes several major companies driving the lion’s share of the S&P 500’s earnings growth.

This, coupled with the recent rise in the 10-year Treasury yield (^TNX) to 4.6%, could serve as a headwind to broaden the scope of the stock market rally beyond just big tech stocks, according to Wilson.

If interest rates and the dollar continue to rise, Wilson argues that “2025 could be a year of two halves, with the first half facing greater challenges before potential stock market-friendly policy changes (tax cut extensions/expansions, government efficiency reduces economic recession). term premium, etc.) can have the desired effects.”

The Canadian dollar rose against its US counterpart on Monday after Canadian Prime Minister and Liberal Party Leader Justin Trudeau officially announced his resignation.

“I intend to resign from my position as party leader and my position as prime minister after the party chooses a new leader,” Trudeau said in a scheduled appearance in Ottawa.

Pressure has mounted in recent weeks, as the country’s party leaders debate how best to deal with US President-elect Donald Trump’s threat of proposed tariffs on Canada. Trudeau’s Liberal Party also lagged behind the opposition Conservative Party in opinion polls.

Last month, Deputy Prime Minister Chrystia Freeland resigned from her position, citing internal conflicts between her and Trudeau over the best way forward for Canada. She added that the country “cannot afford” Trump’s tariff threats.

The two countries are each other’s largest trading partners, and Trump has pledged to increase import tariffs on Canadian goods by 25%.

Given the timeline for Trudeau’s resignation, he will continue to serve as prime minister during the first few months of Trump’s presidency and will lead the tariff talks during that period.

Chip stocks rose across the board on Monday after Taiwanese electronics maker Foxconn reported December sales ahead of analysts’ expectations.

The PHLX Semiconductor Index (^SOX) rose more than 3%, ahead of the Nasdaq (^IXIC) which rose almost 2% and the S&P 500 (^GSPC) which rose almost 1%.

Memory chip maker Micron (MU) jumped 11%, while Broadcom (AVGO) rose nearly 3% and Qualcomm (QCOM) rose nearly 2%. Nvidia (NVDA) shares were up nearly 5% mid-morning, while AMD (AMD) shares were up more than 2%.

Foxconn assembles Apple’s iPhones and data center servers for hyperscalers like Google (GOOG) and Amazon (AMZN). Using the world’s most advanced chips such as Nvidia. Foxconn on Sunday reported December sales of NT$654.8 billion (US$20 billion), up 40% from a year earlier and 7% above consensus estimates, Citi analyst Cary Liu told investors in a note.

Foxconn’s performance is seen as an indicator of the chip industry because it manufactures products that need those chips to function.

Nvidia shares were also boosted by investors looking ahead to CEO Jensen Huang’s keynote speech at the CES trade show in Las Vegas. Read more about that here.

Disney (DIS) will combine its Hulu + Live TV business with sports broadcaster FuboTV (FUBO) in its first major move for media deals in 2025.

According to Disney, it will control 70% of Fubo To a statement. Shareholders of the sports streaming company will own the remaining 30% of the combined business, which will operate under the publicly traded Fubo name.

In conjunction with the deal, Fubo settled all lawsuits with Disney, FOX (FOX), and Warner Bros. Discovery (WBD) related to Venu Sports, the planned sports streaming platform previously announced by the trio.

Fubo shares rose more than 100% in early trading Monday in the wake of the announcement. Shares of Disney, Fox and WBD rose about 1%.

The combination of the two companies will create one of the largest digital pay-TV providers in the U.S. as consumers look for alternatives to cable amid increased cord-cutting.

Fubo, which gives people access to live TV channels over the Internet, has focused primarily on sports and news. Hulu + Live TV, positioned as an alternative option to cable — similar to YouTube TV — allows fans to stream from nearly 100 live TV channels across sports, news, and entertainment.

On a call with investors, Fubo said the combined company is expected to “immediately become cash flow positive,” with more than 6.2 million subscribers in North America and revenue of more than $6 billion.

Read more here.

Bitcoin (BTC-USD) joined the broad market rally on Monday, quickly gaining strength in morning trade to reach over $101,000 per token.

This is the first time the leading cryptocurrency has surpassed $100,000 since December 19.

Nvidia (NVDA) shares rose in CEO Jensen Huang’s keynote at CES around 9:30 PM ET today.

The question now is whether the gains will continue once Hwang speaks.

Bank of America semiconductor sector analyst Vivek Arya seems to think the keynote will be a springboard for further Nvidia gains.

Here’s what Arya said in a note this morning:

Arya reiterated a “buy” rating on Nvidia stock with a very bullish price target of $190 per share.

Stocks continued to build a strong start to the new year on Monday morning.

The S&P 500 (^GSPC) rose 0.8%, while the Dow Jones Industrial Average (^DJI) rose 0.3%. The Nasdaq Composite (^IXIC) led the gains, rising 1.2%, following a technology-led rally on Friday.

Technology led the trend in early trading, with Nvidia (NVDA) and AMD (AMD) shares rising more than 2% and Micron (MU) shares rising more than 9%. Chip names rose after record revenue and strong sales forecasts from Nvidia (NVDA) server partner Foxconn (2317.TW, HNHPF), boosting optimism for AI-fueled growth.

The first full week of trading in 2025 was set to start with US stocks rising after a report from The Washington Post suggested an easing of Trump’s tariff plans could be coming as his administration takes office this month.

like The Washington Post’s Jeff Stein reportsThe sources said: “(Trump’s) aides are still discussing plans to impose import duties on goods from every country. But instead of applying tariffs to all imports, current discussions focus on imposing them only on certain sectors considered critical to the national or economic economy.” protection…”

After his election victory in the fall, Trump pledged to impose blanket tariffs of up to 20% on all imports – from all trading partners – with tougher tariffs targeting some countries, such as Mexico, Canada and China.

The stock market’s shaky finish through 2024 is due, in part, to uncertainty about these policies and Trump’s broader economic agenda heading into 2025.

Last month, the Fed revised its forecast for interest rate cuts in 2025, with Chairman Jay Powell saying during a press conference that the impact of Trump’s tariffs during his first administration – leading to a more robust cycle of rate hikes and a market sell-off in 2025. 2018 – was a “good starting point” for thinking about Trump 2.0.

Ahead of Monday’s open, tech-heavy Nasdaq futures rose about 1% while S&P 500 futures rose 0.8%. Dow Jones futures rose 0.4%.

The dollar index, which traded to its highest levels in two years since Trump won the election, fell about 1% early Monday.