06 Jan Market Ended Mixed Despite Strong Showing From Chip Stocks

Major U.S. equities indexes were mixed at the onset of the first full week of 2025, which will include a day off from trading on Thursday in remembrance of former U.S. President Jimmy Carter, followed by the expected release of the December jobs report on Friday morning.

The S&P 500 added 0.55%, while upbeat indications of semiconductor demand helped lift the tech-heavy Nasdaq 1.24%. After trading in positive territory for most of the day, the DJIA lost steam in the afternoon to end Monday's session with a minor downtick of less than 0.1% at -0.06%. Russell 2000 both closed with declines of 0.1%.

Buying interest in the mega-cap and chipmaker sectors, although this interest faded from initial levels created a rally for chip stocks that pushed the S&P 500 and Nasdaq Composite to their second straight day of gains on Monday, while bitcoin moved above $100,000 for the first time in nearly three weeks.

Taiwan-based technology manufacturer Foxconn posted record revenue for the fourth quarter, citing strong demand for artificial intelligence (AI) servers. The report helped boost shares of companies across the semiconductor industry, including AI chip behemoth and key Foxconn customer $NVIDIA (NVDA.US)$ whose shares added 3.4%.

I am expecting Nvidia to give us a surprise with either a Gap Up or price surge after CEO Jensen Huang keynote, we have heard the updates from AMD, so I think we should be seeing something similar from Nvidia to maintain their market leadership.

I am holding my position for Nvidia, should be able to clear $180 by end of January if Blackwell sales goes well.

06 Jan Market Ended Mixed Despite Strong Showing From Chip Stocks

S&P 500 Communication Services and Technology Led The Pack

With only four S&P 500 sectors closed in the green, we are seeing the concentration of catalyst coming from the communication services and technology sectors. Seven S&P 500 sectors closed lower, while four closed higher.

The performance from Meta Platforms (META) and Alphabet (GOOG, GOOGL) helped the technology sector to 2.13% gain.

The strong performance from Micron Technology (MU), SMCI and Teradyne also helped technology sector to a 1.44% gain.

Other large-cap technology stocks were higher across the board Monday, led by a 4.2% gain for Facebook and Instagram parent Meta Platforms (META). Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Tesla (TSLA) and Broadcom (AVGO) also gained ground.

Shares of memory solutions specialist $Micron Technology (MU.US)$ , whose tech is incorporated in Nvidia's next-generation Blackwell AI platforms, surged 10.5%, notching Monday's strongest performance in the S&P 500.

Other companies benefitted from the wave of AI server optimism. Shares of server maker Super Micro Computer (SMCI) soared 9.4% following positive commentary from Lynx Equity.

Shares of electronic testing equipment manufacturer Teradyne (TER) jumped 7.2% after Northland Securities upgraded the stock to "outperform" and boosted its price target.

Note Yield Up From Last Week

The yield on 10-year Treasurys, which is correlated with expectations about where interest rates are headed, was at 4.63%, up from 4.60% at the end of last week. Investors are awaiting the release on Friday of the December jobs report for information that could affect the Federal Reserve's decision on interest rates later this month.

Stocks To Watch

Shares of $MicroStrategy (MSTR.US)$ , one of the world's largest holders of bitcoin, were up nearly 12% to lead Nasdaq gainers. The company said Monday it had purchased more bitcoin for the ninth consecutive week, after announcing on Friday it would raise capital via a share offering in a move to strengthen its balance sheet and allow it to buy more of the digital currency.

Shares of AI chipmaker and investor favorite Nvidia (NVDA) rose 3.4% to a record closing high ahead of a highly anticipated keynote speech from CEO Jensen Huang, scheduled for Monday evening, at a major consumer electronics trade show in Las Vegas.

Shares of electronic testing equipment manufacturer $Teradyne (TER.US)$ jumped 7.2% after Northland Securities upgraded the stock to "outperform" and boosted its price target. Analysts believe Teradyne is well positioned to gain market share in the sector as cloud computing companies use the firm's testing platform to design application-specific integrated circuits (ASICs). Northland also indicated that ongoing technological transitions in the semiconductor industry could boost demand for Teradyne's testers.

I think we can watch TER for an opportunity, there should be another gap up coming on Tuesday (07 Jan) as there is a bullish MACD crossover formed with MTF providing the confidence of a strong upward trend.

We are also going to see a golden cross forming, so this is an opportunity which I will be watching the price action for TER.

Google (GOOG, GOOGL) unveiled its latest Google TV operating system with the Gemini AI assistant at the Consumer Electronics Show. This new feature allows users to interact with their TV in natural language, offering capabilities like news summaries and smart home device control. The Gemini model aims to enhance user experience by providing AI-generated content and summaries.

$FuboTV (FUBO.US)$ and Disney (DIS) announced a merger of Disney's Hulu + Live TV with Fubo, creating a new venture serving over 6.2 million customers in North America. Disney will hold a 70% controlling stake, and the deal includes a settlement of litigation with Disney, ESPN, Fox, and Warner Bros. Discovery.

Summary

I think the buying interest would continue into Tuesday (07 Jan) as investors continue to watch updates from CES 2025, the tech stocks should be making some strong move into their new highs.

But I will be watching some of the other chip makers stocks, as there have been quite some activities, not forgetting the crypto stocks as Bitcoin look to have nice fund inflows.

Appreciate if you could share your thoughts in the comment section whether you think market would continue to see strong showing as investors buying interest continue.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.

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Use A.I. to pick stocks. Find me in YouTube handle nerdbull1669

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