Inventory market right this moment: Nasdaq, S&P 500, Dow leap as Nvidia leads chip shares larger

Nvidia (NVDA) inventory prolonged final week’s good points, with shares set to surpass their earlier all-time closing excessive.

The inventory climbed almost 5% to commerce at round $151. The chip marker reached its earlier document shut of $148.88 a share on Nov. 7.

The optimistic swings come as Nvidia CEO Jensen Huang is ready to ship a keynote deal with on the annual Client Electronics Present (CES) in Las Vegas at 6:20 p.m. PST on Monday. The deal with might be livestreamed on Fb, YouTube, LinkedIn, and different websites.

Buyers are anticipating extra updates on the rollout of the corporate’s Blackwell chips, which analysts say will drive a large new cycle of demand regardless of fears over an AI spending slowdown.

Learn extra right here.

The US greenback index (DX-Y.NYB) moved decrease, coming off its current two-year excessive on Monday after the Washington Submit reported that President-elect Donald Trump’s tariff plans could possibly be much less broad than initially thought.

Trump rapidly responded on Reality Social, saying the report was “incorrect.” The US greenback index (DX-Y.NYB), which had been down as a lot as 1%, pared some losses and was off about 0.5% finally examine. Each the S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) inventory indexes had been up greater than 1%.

In a notice to purchasers late Sunday, Morgan Stanley chief funding officer Mike Wilson wrote that the greenback index has risen to a stage that “has the potential to weigh on equities with extra vital international gross sales publicity.” As famous final week, that group contains most of the key corporations driving the lion’s share of S&P 500 earnings development.

This, mixed with the current rise within the 10-year Treasury yield (^TNX) to 4.6%, could possibly be a headwind for the broadening of the inventory market rally past simply large-cap tech shares, per Wilson.

Ought to the rise in charges and the greenback persist, Wilson argues that “2025 could possibly be a yr of two halves, with the primary half being extra challenged earlier than potential equity-market-friendly coverage adjustments (tax reduce extensions/expansions, authorities effectivity reduces the time period premium, and so on.) can have their desired results.”

The Canadian greenback strengthened in opposition to its US counterpart on Monday after Canadian Prime Minister and Liberal Social gathering chief Justin Trudeau formally introduced his resignation.

“I intend to resign as get together chief and as prime minister after the get together selects a brand new chief,” Trudeau stated in a scheduled look in Ottawa.

Stress has mounted in current weeks because the nation’s get together leaders debate greatest deal with US President-elect Donald Trump’s proposed tariff risk on Canada. Trudeau’s Liberal Social gathering has additionally lagged behind the opposition Conservative Social gathering in opinion polls.

Final month, Deputy Prime Minister Chrystia Freeland resigned from her place, citing inside struggles between herself and Trudeau on the perfect path ahead for Canada. She added the nation can “in poor health afford” Trump’s tariff threats.

The 2 nations are one another’s greatest buying and selling parters, and Trump has vowed to extend import tariffs on Canadian items by 25%.

Given Trudeau’s resignation timeline, he’ll proceed to function prime minister throughout the first few month’s of Trump’s presidency and can handle tariff talks throughout that point.

Chip shares rose throughout the board Monday after Taiwanese electronics contract producer Foxconn reported December gross sales forward of analyst expectations.

The PHLX Semiconductor Index (^SOX) rose greater than 3%, forward of the Nasdaq’s (^IXIC) close to 2% acquire and the S&P 500’s (^GSPC) roughly 1% climb.

Reminiscence chipmaker Micron (MU) jumped 11%, whereas Broadcom (AVGO) rose virtually 3% and Qualcomm (QCOM) ticked up near 2%. Nvidia (NVDA) was up almost 5% mid-morning, whereas AMD (AMD) climbed greater than 2%.

Foxconn assembles Apple’s iPhones and knowledge middle servers for hyperscalers akin to Google (GOOG) and Amazon (AMZN) utilizing the world’s most superior chips akin to Nvidia’s. Foxconn on Sunday reported December gross sales of NT$654.8 billion ($20 billion), a 40% improve from the prior yr and seven% larger than consensus estimates, Citi analyst Carrie Liu instructed buyers in a notice.

Foxconn’s efficiency is seen as an indicator for the chip sector as a result of it manufactures merchandise that want these chips to perform.

Nvidia inventory was additionally boosted by buyers looking forward to CEO Jensen Huang’s keynote deal with on the CES commerce present in Las Vegas. Learn extra on that right here.

Disney (DIS) will mix its Hulu + Reside TV enterprise with sports activities streamer FuboTV (FUBO) within the first main media-dealmaking transfer of 2025.

Disney will management 70% of Fubo, in accordance to an announcement. Shareholders of the sports activities streamer will personal the remaining 30% of the mixed enterprise, which can function below the Fubo publicly traded firm identify.

Along side the transaction, Fubo settled all litigation with Disney, Fox (FOX), and Warner Bros. Discovery (WBD) associated to Venu Sports activities, the deliberate sports activities streaming platform beforehand introduced by the trio.

Shares of Fubo surged over 100% in early buying and selling Monday on the heels of the announcement. Disney, Fox, and WBD shares had been all up about 1%.

The mixture of the 2 companies will create one of many largest digital pay-TV suppliers within the US as shoppers seek for cable alternate options amid elevated cord-cutting.

Fubo, which gives folks entry to dwell TV channels over the web, has primarily targeted on sports activities and information. Hulu + Reside TV, categorized as a cable substitute possibility — much like YouTube TV — permits audiences to stream from about 100 dwell TV channels throughout sports activities, information, and leisure.

On an investor name, Fubo stated the mixed firm is anticipated to “turn into instantly money circulate optimistic,” with over 6.2 million subscribers in North America and over $6 billion in income.

Learn extra right here.

Bitcoin (BTC-USD) joined the widespread market rally on Monday, rapidly gaining steam in morning commerce to succeed in greater than $101,000 per token.

This marked the primary time the main cryptocurrency has topped $100,000 since Dec. 19.

Nvidia (NVDA) shares have been pushing larger into CEO Jensen Huang’s CES keynote speech round 9:30 p.m. ET right this moment.

The query is whether or not the good points might be sustained as soon as Huang has spoken.

Financial institution of America semiconductor sector analyst Vivek Arya appears to assume the keynote might be a springboard for additional Nvidia good points.

Here is what Arya stated in a notice this AM:

Arya reiterated a Purchase” score on Nvidia’s inventory with a really bullish worth goal of $190 per share.

Shares continued to construct a robust begin to the brand new yr on Monday morning.

The S&P 500 (^GSPC) rose 0.8%, whereas the Dow Jones Industrial Common (^DJI) added 0.3%. The tech-heavy Nasdaq Composite (^IXIC) led the good points, popping 1.2%, after a tech-led rally on Friday.

Tech led the cost in early buying and selling, with shares of Nvidia (NVDA) and AMD (AMD) rising greater than 2% and Micron (MU) capturing larger by greater than 9%. The chip names rallied after a document income and a robust gross sales forecast from Nvidia (NVDA) server accomplice Foxconn (2317.TW, HNHPF), which boosted optimism for AI-fueled development.

The primary full week of buying and selling in 2025 was set to start with US shares larger after a report from the Washington Submit advised a softening in Trump’s tariff plans could possibly be coming as his administration takes energy this month.

As The Submit’s Jeff Stein reviews: “[Trump’s] aides are nonetheless discussing plans to impose import duties on items from each nation, the folks stated. However relatively than apply tariffs to all imports, the present discussions middle on imposing them solely on sure sectors deemed vital to nationwide or financial safety…”

After his election win within the fall, Trump pledged to impose a blanket tariff of as much as 20% on all imports — from all buying and selling companions — with even stiffer levies focused at some nations, like Mexico, Canada, and China.

The inventory market’s shaky end to 2024 was, partly, attributable to the uncertainty of those insurance policies and Trump’s broader financial agenda heading into 2025.

Final month, the Fed revised its outlook for price cuts in 2025, with Chair Jay Powell saying throughout a press convention that the affect of Trump’s tariffs throughout his first administration — which prompted a extra aggressive rate of interest mountaineering cycle and a market sell-off in 2018 — was “an excellent place to begin” for excited about Trump 2.0.

Forward of Monday’s open, futures on the tech-heavy Nasdaq had been up about 1% whereas S&P 500 futures rose 0.8%. Dow futures had been up nearer to 0.4%.

The greenback index, which has traded to two-year highs since Trump’s election win, was off about 1% early Monday.