In a remarkable trading session for US benchmark equity indexes, the markets were buoyed by noteworthy performances from several chipmaker and technology stocks. By midday Monday, the technology-heavy Nasdaq Composite had surged 1.1%, reaching 19,828.1, while the S&P 500 followed suit with a 0.6% increase to 5,976.8.
The Dow Jones Industrial Average saw a modest rise of 0.1%, closing at 42,781.7. Among the sectors, technology and communication services dominated as the top gainers, while real estate and utilities experienced the steepest declines. Highlighting the session was the Taiwanese electronics manufacturer Hon Hai Precision, popularly known as Foxconn, which declared a staggering 42% year-over-year revenue increase for December.
This strong performance contributed to the upward trajectory of related stocks within the technology sector. Particularly noteworthy was Micron Technology, whose shares soared nearly 13% intraday on Monday, securing its position as the leading performer on both the S&P 500 and Nasdaq indexes. Following closely was Super Micro Computer, which climbed 11%, marking it as the second top gainer on the S&P 500.
Also rounding out the list of strong performers on the Nasdaq were MicroStrategy, ASML, and Arm, with Nvidia taking the crown as the top gainer on the Dow, reporting a 3.7% rise. In the realm of company developments, United States Steel and Japan's Nippon Steel have jointly pursued legal recourse against President Joe Biden's decision to impede their merger deal.
Following this news, US Steel's stocks reflected a positive response, experiencing a 5.2% upturn. Walt Disney made headlines with its strategic decision to merge its Hulu + Live TV services with FuboTV, effectively acquiring a 70% stake in the streaming competitor. This merger not only strengthens Disney’s foothold in the media and entertainment landscape but also resolves ongoing litigation concerning the proposed Venu Sports venture.
As a result, Disney shares edged up by 0.4%, while FuboTV's shares skyrocketed by an impressive 240%. On the downside, Axon Enterprise and Palantir Technologies saw their shares decline by 5.9% and 5.2%, respectively, marking them as the weakest performers of the day on both the S&P 500 and Nasdaq. From a financial standpoint, the US 10-year yield noted a rise of 3.7 basis points, reaching 4.63%, while the two-year rate settled minimally lower by one basis point at 4.27%.
In comments that resonated through the financial community, Federal Reserve Governor Lisa Cook emphasized the need for monetary policymakers to adopt a 'more cautious' approach regarding interest rate cuts, considering the Fed's recent easing measures which amounted to 100 basis points since September. 'Price increases have cooled notably over the past two and a half years, but despite this significant progress on disinflation, there is still further to go before reaching our inflation target of 2%,' Cook stated. Meanwhile, the energy sector experienced fluctuations as West Texas Intermediate crude oil prices dipped by 0.8% to $73.35 a barrel.
In precious metals, gold prices fell by 0.3% to $2,646.50 per troy ounce, whereas silver rose by 1.5% to settle at $30.50 per ounce..