Traders work at the New York Stock Exchange on Dec. 17, 2024.
NYSE
Stocks jumped on Monday, recovering from last week’s losses as chipmakers jumped.
The Dow Jones Industrial Average traded 351 points higher, or 0.8%. The S&P 500 climbed nearly 1.3%, and the Nasdaq Composite advanced 1.8%.
Chip stocks led the session’s gains after Foxconn announced record fourth-quarter revenue. Nvidia jumped nearly 5%, putting the chipmaker on track for a record close. Broadcom gained 2%, while Micron Technology advanced more than 11%.
“The market is, I think, being pretty optimistic about tech right now, looking for earnings growth of 20% this year versus 12.8% for the market … but valuations do appear restrictive,” CFRA Research chief investment strategist Sam Stovall said. “The group will probably not rise based on P/E multiples, but will have to rise based on organic earnings growth.”
Stovall expects “heightened volatility” this year expensive valuations, potential adjustments to interest rate forecasts and earnings projections, and a new presidential administration. The third year of a bull market also tends to be more challenging per historical data going back to World War II, he added.
Market sentiment on Monday was also boosted by a Washington Post report saying President-elect Donald Trump’s tariff plan would be narrower than anticipated, covering only critical imports. Trump called for “universal” tariffs as high as 10%-20% during his campaign. Ford and General Motors shares gained 1.8% and 4.2%, respectively, on optimism a more restrained tariff policy from Trump wouldn’t spark a global trade war.
Investors are beginning another shortened trading week with lingering concerns about the Federal Reserve’s interest rate projections. The New York Stock Exchange will be closed Thursday to mourn the death of former President Jimmy Carter.
The 10-year yield moved higher ahead of the expected data, hovering around 4.6%.
The December jobs report is due out Friday and will be one of the last key pieces of data before the Fed meeting at the end of this month. Investors are also watching the Job Openings and Labor Turnover Survey (JOLTS) Tuesday and December ADP Employment Survey Wednesday.
