Wall Street’s main indexes opened higher on Monday after last week’s losses as a report suggested that the incoming Trump administration could adopt a less aggressive tariff stance.
Major stocks also rose as chip stocks in the US gained on Monday.
At the time of writing, the Dow Jones Industrial Average was 0.2% higher, while the S&P 500 index rose 0.8%. The Nasdaq Composite climbed 1.3% from the previous close.
Chip stocks such as Foxconn, NVIDIA, and Broadcom all gained on Monday, aiding sentiments across the markets.
“The last fortnight has seen volatile, choppy trade for all the major US stock indices. Much of this can be blamed on year-end window dressing and rebalancing, in the absence of other catalysts to explain the large price swings experienced over the holiday period,” David Morrison, senior market analyst at Trade Nation, said.
“If so, then this week should herald a return to ‘normality’, although investors should note that US markets are closed on Thursday, this time for a national day of mourning following the death of former President Jimmy Carter,” Morrison said.
This may interrupt the general trading flow, but rebalancing and year-end window dressing should be done and dusted by now.
Meanwhile, a Washington Post report indicated that the US President-elect Donald Trump could pursue a less aggressive tariff plan. This boosted sentiments as well.
Additionally, investors will be monitoring the release of key economic data from the US later this week.
The December jobs report will be released on Friday, which will be the last piece of data before the US Federal Reserve meet at the end of January.
Auto stocks jump
Shares of automakers such as Ford and General Motors rose sharply on Monday on reports of Trump’s less aggressive tariff plan.
Trump is reportedly planning to narrow his tariff plans to target specific sectors, according to a Washington Post report.
Ahead of his inauguration day on January 20, Trump may only impose tariffs on sectors that are critical for national or economic security.
At the time of writing, shares of Ford were nearly 2% higher, while those of General Motors were up 3.9% from the previous close.
FuboTV soars: here’s why
Shares of FuboTV soared more than 170% on Monday after the company was closer to a deal with Walt Disney.
The company was nearer to combining its online live TV business with Walt Disney, according to the report.
The new deal will include Disney’s Hulu + Live TV business.
This will be 30% owned by Fubo and 70% by Disney, Bloomberg said.
Also, Fubo will reportedly drop its anti-competitive litigation against Disney, Fox, and Warner Bros. over Venu Sports, the report showed.
Fubo, an internet-based live TV service, has built its reputation on a strong focus on sports and news. Similarly, Hulu + Live TV, a cable replacement service akin to YouTube TV, offers streaming access to around 100 live TV channels, covering sports, news, and entertainment.
Chip stocks rise
Shares of chip stocks rose broadly on Monday after Foxconn reported a record fourth-quarter revenue.
Shares of NVIDIA and Broadcom rose 4.7% and 3% respectively on Monday, while Micron Technology gained 4.3% from the previous close.
Additionally, NVIDIA was poised to end the session on Monday with record highs, according to a CNBC report.
Advanced Micro Devices also advanced more than 3%.
Shares of semiconductor companies have had a stellar year in 2024. Demand for computing power on the back of artificial intelligence showed no signs of slowing down.
The VanEck Semiconductor ETF was up more than 4% on Monday.
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