Stocks experienced a significant upturn on Monday, building on the momentum from last Friday's session. The Nasdaq, which heavily features technology stocks, spearheaded the surge, continuing to recover from the one-month low it hit the previous Thursday.
As of now, the major indices are trading near their session peaks. The Nasdaq has risen by 341.99 points, equating to a 1.7% increase to 19,963.66. The S&P 500 has climbed 63.87 points to reach 6,006.34, marking a 1.1% gain, while the Dow Jones has advanced by 217.72 points, or 0.5%, standing at 42,949.85.
The tech sector remains robust, bolstered by Foxconn's report of record fourth-quarter revenue, driven in part by strong demand for AI servers. NVIDIA (NVDA), a key partner with Foxconn and a leader in AI technology, saw its shares leap by 4.8%. Micron Technology (MU) also posted an impressive gain, with its shares soaring by 10.4%.
Leading sectors within the tech space include computer hardware and semiconductors. The NYSE Arca Computer Hardware Index and the Philadelphia Semiconductor Index have risen 4.0% and 3.8% respectively, reflecting strong performance in these areas.
Beyond tech, there is notable strength in airline stocks, demonstrated by the NYSE Arca Airline Index rising 3.7%. This uplift was fueled by American Airlines (AAL), following TD Cowen's upgrade of its stock from Hold to Buy.
Other sectors showing solid gains include steel, retail, and banking, although utility stocks, usually sensitive to interest rate changes, are facing pressure due to rising treasury yields.
Further optimism was sparked by a Washington Post report indicating that President-elect Donald Trump might reconsider some of his proposed tariffs. While he had initially proposed sweeping tariffs of 10-20% on all imports, suggestions now indicate a focus on levies targeting "critical imports."
In international markets, Asia-Pacific stocks showed varied results on Monday. Japan's Nikkei 225 Index fell by 1.5%, whereas South Korea's Kospi saw a 1.9% increase.
European markets mainly rose, with France's CAC 40 Index up by 1.6% and Germany's DAX Index gaining 1.0%. In contrast, the UK's FTSE 100 Index remained nearly unchanged, slightly below flat.
In the bond market, treasury prices continued their downward trajectory from the previous session. Consequently, the yield on the benchmark ten-year note increased by 4.5 basis points, reaching 4.640%.
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