By admin 
Traders work at the New York Stock Exchange on Dec. 17, 2024.
NYSE
The S&P 500 climbed alongside the Nasdaq Composite on Monday for back-to-back wins, as Wall Street rebounded from a losing week and chipmakers surged.
The broad market index advanced 0.55% to end at 5,975.38, and the Nasdaq Composite added 1.24% to 19,864.98. The Dow Jones Industrial Average lagged, losing 25.57 points, or 0.06%, and closing at 42,706.56. Earlier in the session, the 30-stock average rose as much as 383 points.
Chip stocks were among the big winners of the session after Foxconn announced record fourth-quarter revenue. Nvidia jumped 3.4%, closing at a record after the stock posted three straight days of gains. Broadcom gained about 1.7%, while Micron Technology advanced 10.5%. The VanEck Semiconductor ETF (SMH) jumped more than 3%.
“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 given 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 less than 1% and more than 3%, respectively, on optimism that a more restrained tariff policy from Trump wouldn’t spark a global trade war.
Investors began 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.
Elsewhere, the 10-year Treasury yield rose to top 4.6% ahead of important economic reports out later this week.
The December jobs report is due out Friday and will be one of the last key pieces of data before the Fed meeting near the end of this month. Investors are also watching the Job Openings and Labor Turnover Survey, or JOLTS, on Tuesday and December ADP Employment Survey on Wednesday.