Nvidia, Microsoft Boost Markets Amid Tech Surge on Wall Street/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stock markets rebounded Monday as the S&P 500 rose 0.8%, led by gains in Nvidia, Microsoft, and other tech stocks driven by artificial intelligence optimism. The Nasdaq composite jumped 1.3%, while the Dow Jones added 0.3%. Investors are eyeing economic updates, the Federal Reserve’s minutes, and a shortened trading week due to a National Day of Mourning for former President Jimmy Carter.
Key Points
- S&P 500 Climbs: Up 0.8%, recovering from a holiday-season slide.
- Tech Rally: Nvidia rose 3.1%, fueled by AI enthusiasm ahead of its CEO’s CES speech.
- Microsoft Advances: Shares increased 1.1% as the company highlights its $80 billion AI datacenter investments.
- Uber Buyback: Shares surged 3.9% after announcing an accelerated $1.5 billion stock buyback.
- U.S. Steel Lawsuit: Stock gained 4.2% as the company challenges Biden’s block of a merger with Nippon Steel.
Nvidia, Microsoft Boost Markets Amid Tech Surge on Wall Street
Deep Look
Wall Street’s Recovery
Tech stocks spearheaded Monday’s market recovery after five consecutive S&P 500 losses. The Nasdaq composite climbed 1.3%, benefiting from sustained optimism in artificial intelligence technologies.
- Nvidia: Gained 3.1% ahead of CEO Jensen Huang’s CES speech. Despite concerns of a potential bubble, enthusiasm for AI innovation remains robust.
- Microsoft: Vice Chair Brad Smith reaffirmed the company’s commitment to AI, describing it as a transformative opportunity akin to electricity’s invention.
Corporate Updates
- Uber: Shares rose 3.9% after announcing a $1.5 billion acceleration in its stock buyback program. CFO Prashanth Mahendra-Rajah cited undervaluation of Uber’s stock as the reason.
- U.S. Steel: Stock increased 4.2% following the company’s federal lawsuit challenging President Joe Biden’s block of a $15 billion merger with Japan’s Nippon Steel. The companies allege the decision was politically motivated.
Shortened Trading Week
The New York Stock Exchange and Nasdaq will close Thursday for a National Day of Mourning honoring former President Jimmy Carter. However, key economic updates could still shake markets:
- Tuesday: Reports on U.S. job openings and services industry health.
- Wednesday: Federal Reserve minutes from the last policy meeting.
- Friday: The highly anticipated monthly jobs report and U.S. consumer sentiment updates.
Economic Context
- Resilient Economy: Despite high interest rates to curb inflation, the U.S. economy remains strong. The Federal Reserve has cut rates three times since September but signaled fewer reductions in 2025 as inflation approaches the 2% target.
- Inflation Concerns: Tariffs and policies from President-elect Donald Trump may add inflationary pressures.
Treasury Yields
The bond market saw slight increases in Treasury yields:
- 10-Year Treasury Yield: Rose to 4.61% from 4.60% on Friday.
- Investor Implications: Higher yields on bonds may deter investors from stocks, though Morgan Stanley’s Michael Wilson notes the sweet spot for stocks lies in yields between 4.00% and 4.50%.
Global Markets
Overseas stock markets showed mixed performance across Europe and Asia, reflecting cautious optimism as global investors await U.S. economic data.
You must Register or Login to post a comment.