Stock market today: Tech rallies as AI names lead markets higher ahead of CES event
AP Photo/Richard Drew
- US stocks jumped on Monday, led by tech giants Nvidia, Alphabet, and Meta Platforms.
- The rise coincided with the 2025 Consumer Electronics Show, which will featue a keynote from Nvidia's CEO.
- Chip stocks rallied, boosted by Foxconn's strong earnings report.
US stocks jumped on Monday, led by mega-cap technology stocks like Nvidia, Alphabet, and Meta Platforms as investors revived the artificial intelligence hype.
The gains in the tech sector come as the 2025 Consumer Electronics Show kicks off on Monday. Nvidia CEO Jensen Huang will deliver the opening keynote at 6:30 p.m. PST.
Nvidia shares surged as much as 5% and nearly hit a record high. The broader Nasdaq 100 Index jumped more than 1%. The S&P 500 rose more than 0.5%, though the Dow Jones Industrial Average closed slightly lower.
Wall Street expects Huang to deliver an update on the company's data center business and share an update on its foray into the robotics industry.
"We look for updates on Robotics strategy from silicon to software and emergence of 'physical AI' theme," Bank of America analyst Vivek Arya said in a recent note, adding that he expects Nvidia to make "a strong push" into robotics.
Chip stocks gained big on Monday, partly due to a solid earnings report from Foxconn, a contract manufacturer of chips and other devices.
The company reported a 15% year-over-year growth in revenue.
Shares of chip companies including Micron, ASML, and Taiwan Semiconductor surged 8%, 6%, and 11%, respectively.
Here's where US indexes stood at the 4:00 p.m. closing bell on Monday:
- S&P 500: 5,975.38, up 0.55%
- Dow Jones Industrial Average: 42,706.56, down 0.06% (-25.57 points)
- Nasdaq composite: 19,864.98, up 1.24%
The US dollar saw volatile swings on Monday after The Washington Post reported that the incoming Trump administration's tariff plans would be more watered down than initially thought.
The threat of broad-based tariffs had stoked fears of a rebound in inflation, which would limit the Federal Reserve's ability to lower interest rates.
But Trump pushed back on The Washington Post's report.
"The story in the Washington Post, quoting so-called anonymous sources, which don't exist, incorrectly states that my tariff policy will be pared back. That is wrong," Trump said in a post on Truth Social.
It's a shortened trading week, with the stock market closed on Thursday in remembrance of former President Jimmy Carter, who died on December 29.
Here's what else happened today:
- From Rolexes to homes, patient retail bulls who bought bitcoin early are cashing in.
- The stock market boom will end in 2025 as investors punish the US for its deficits, an investor said.
- FuboTV soared 250% after it struck a deal with Disney to combine its streaming service with Hulu.
- Here's what to expect from Nvidia CEO Jensen Huang's keynote speech at CES this evening.
- Warren Buffett's favorite internet stock was called a "top pick" by Citi.
- Here is a complete rundown of Wall Street's 2025 S&P 500 targets.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil dropped 0.73% to $73.42 a barrel. Brent crude, the international benchmark, was lower by 0.42% at $76.19 a barrel.
- Gold was 0.36% lower at $2,645.10 an ounce.
- The 10-year Treasury yield rose 2 basis points to 4.625%.
- Bitcoin surged 3.84% to $102,123.