The S&P 500 and Nasdaq Composite closed at over one-week highs on Monday, supported by gains in semiconductor and technology stocks, according to Reuters.
The S&P 500 rose 32.91 points, or 0.55%, to 5,975.38, while the Nasdaq Composite climbed 243.30 points, or 1.24%, to 19,864.98. In contrast, the Dow Jones Industrial Average fell 25.57 points, or 0.06%, to 42,706.56.
The rally was driven by Microsoft's plans to invest US$80 billion in artificial intelligence-enabled data centres and Foxconn's better-than-expected fourth-quarter revenue. This buoyed chipmakers like Nvidia, which gained 3.43%, Advanced Micro Devices (up 3.33%), and Micron Technology, which surged 10.45%.
The Philadelphia Semiconductor Index rose 2.84%, contributing to the broader tech sector's 1.44% gain, while communication services climbed 2.13%.
Ford and General Motors saw gains of 0.40% and 3.40%, respectively, following a report suggesting President-elect Donald Trump's incoming administration may focus tariffs on critical sectors rather than broad-based measures.
Investors continue to evaluate Trump's policies, anticipated to benefit corporate America, though they also pose risks of inflationary pressure. Fed policymakers, including Governor Lisa Cook, have cautioned about persistent inflation risks in 2025.
Volume on US exchanges reached 17.36 billion shares, surpassing the 20-day average of 12.37 billion. The market breadth was positive, with a slight edge for advancing issues on both the NYSE and Nasdaq.
Markets will pause on Thursday to observe a national day of mourning for former President Jimmy Carter.
