Stock market today: US stocks rise as Nvidia, Broadcom, lead tech sector higher
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- US stocks climbed higher on Monday, with a rally among chipmakers fueling the tech sector.
- Nvidia gained 3%, while Broadcom and Advanced Micro Devices rose 5% and 4% respectively.
- Investors will see a short trading week, with the NYSE shuttering early on Tuesday.
US stocks climbed on Monday, with chip stocks leading the tech sector higher while investors eyed a possible year-end rally. All three benchmark indexes ended the trading session in the green, with the tech-heavy Nasdaq Composite rising nearly 1%.
Chipmakers fueled the climb in tech shares, clawing back losses from last week's Fed-fueled sell-off. Nvidia gained 3% by the closing bell. Broadcom and Advanced Micro Devices rose 5% and 4% respectively.
"It's been an AI-driven year, and it appears that's how it is headed into the year-end," Louis Navellier, the chief investment officer of Navellier & Associates, said in a note.
Investors, meanwhile, are eyeing a possible Santa Claus rally, which refers to a stock surge that takes place over the last trading week of the year and the first two trading days of the new year.
If one occurs, it could indicate another positive year for the stock market, according to Sam Stovall, the chief investment strategist at CFRA Research.
"A positive Santa Claus Rally has preceded a 10.4% average annual gain for the S&P 500 since WWII," Stovall wrote in a note. "However, a decline in this seven-day period saw the S&P 500 post an average annual increase of only 5.7%, posting a gain just 32% of the time."
Investors will see a short trading day tomorrow as the New York Stock Exchange closes for the Christmas holiday. Trading will end Tuesday at 1 p.m. ET.
Here's where US indexes stood at the 4:00 p.m. closing bell on Monday:
- S&P 500: 5,947.07 (+0.73%)
- Dow Jones Industrial Average: 42,906.95 (+0.16%)
- Nasdaq composite: 19,764.88 (+0.98%)
Here's what else is going on:
- US consumer confidence unexpectedly dropped to levels close to recession territory, according to the Conference Board.
- Russia's overheated economy is squeezing one of Moscow's key trading channels with China.
- MicroStrategy has kept up its bitcoin buying spree for seven weeks in a row.
- The probability of a recession next year is 0%. Here's what to worry about instead, according to one top economist.
- There are 2 defensive sectors of the stock market primed for gains, according to Goldman Sachs.