On Monday, the S&P 500 and the Nasdaq Composite experienced a notable increase, driven by a rally in specific chipmaker and technology stocks. The tech-heavy Nasdaq saw an uptick of 1.2%, reaching 19,865, while the S&P 500 recorded a climb of 0.6% to close at 5,975.4. In contrast, the Dow Jones Industrial Average dipped slightly by 0.1%, ending the day at 42,706.6.
Within the sectors, communication services emerged as the strongest gainer, appreciating by 2.1%, whereas the real estate sector faced the steepest decline. On Sunday, Hon Hai Precision Industry Company, also widely recognized as Foxconn, reported an impressive 42% year-over-year surge in its December revenue.
This buoyant performance contributed positively to market sentiments. Among individual stocks, Micron Technology ($MU) emerged as a standout performer, with shares soaring nearly 11%—the top performer on the S&P 500 and the second-best on the Nasdaq. Super Micro Computer ($SMCI) followed closely behind, gaining 9.4% on the S&P 500.
Meanwhile, MicroStrategy ($MSTR) excelled as the top performer on the Nasdaq, accompanied by strong performances from ASML ($ASML) and Arm Holdings ($ARM). Notably, Nvidia ($NVDA) led the Dow with a rise of 3.4%. In corporate developments, United States Steel Corporation ($X) and Japan's Nippon Steel Corporation have jointly initiated legal proceedings against President Joe Biden's decision to block their merger proposal.
Consequently, shares for US Steel saw a significant increase of 8.1% following the news. In the realm of entertainment and media, Walt Disney Company ($DIS) has reached an agreement to merge its Hulu + Live TV services with FuboTV ($FUBO). This strategic move will enable Disney to acquire a 70% stake in FuboTV, while also resolving ongoing litigation related to the Venu Sports venture.
As a result, Disney's stock experienced a modest decline of 0.1%, whereas FuboTV shares skyrocketed by an impressive 251%. Conversely, shares of Axon Enterprise ($AXON) and Palantir Technologies ($PLTR) faced setbacks, declining by 5.1% and 5%, respectively. These stocks were identified as the poorest performers on both the S&P 500 and the Nasdaq. On the bond market front, the US 10-year Treasury yield climbed by 2.7 basis points, reaching 4.62%.
In contrast, the two-year yield experienced a decrease of 1.1 basis points, settling at 4.27%. Federal Reserve Governor Lisa Cook emphasized the necessity for monetary policymakers to adopt a 'more cautious' approach concerning interest rate adjustments, especially in light of the central bank's previous 100 basis points of easing 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 remarked. In commodities, West Texas Intermediate crude oil saw a decline of 0.8%, now priced at $73.40 per barrel. From an economic perspective, the US services sector experienced growth, reaching a 33-month high in the previous month, as new orders expanded at the fastest rate since March 2022, according to S&P Global ($SPGI).
Chief Business Economist Chris Williamson highlighted that, "The strong service sector (purchasing managers' index) reading for December sets the US economy up for a good start to 2025. However, with growth as robust as this, it's understandable that policymakers are adopting a more cautious stance regarding interest rate reductions." Additionally, US durable goods orders witnessed a more significant decline than anticipated in November, spurred by drops in transportation equipment and electronics. Gold prices decreased slightly by 0.3%, settling at $2,647.20 per troy ounce, while silver experienced a rise of 1.4%, ending the day at $30.49 per ounce..