Wall Street saw another record-breaking session Monday, driven largely by gains in technology stocks. The S&P 500 climbed 0.2% in afternoon trading, hitting an all-time high after its strongest month of the year. Meanwhile, the Nasdaq composite surged 0.9%, though the Dow Jones Industrial Average dipped 86 points, or 0.2%.
Tech Titans Lead the Charge
Super Micro Computer stole the spotlight with a 31.1% surge, leading the market after resolving accusations of misconduct. The server-maker, a key player in AI technologies, announced it found no evidence of wrongdoing and plans governance improvements, including appointing a new CFO and general counsel.
Big Tech also bolstered the S&P 500, with Microsoft gaining 1.8% and Meta Platforms rising 2.9%. Amazon, buoyed by expectations of record-breaking Cyber Monday sales, added 1.3%. Intel, however, slipped 1.1% after announcing CEO Pat Gelsinger’s retirement, with the company pledging to “restore investor confidence” as it searches for a successor.
Retailers Ride Cyber Monday Wave
Retail stocks showed mixed performance as Cyber Monday unfolded. Walmart edged up 0.3% on optimism for the holiday season, while Target dropped 1.6% after issuing a less encouraging forecast. Amazon stood to benefit most, reflecting growing confidence in online sales.
Corporate Shake-Ups and Global Concerns
Stellantis, the world’s fourth-largest automaker, fell 6.3% following CEO Carlos Tavares’ resignation amid declining sales and dealership inventory struggles. PG&E also dropped 3.7% after announcing plans to raise $2.4 billion through stock and preferred share sales.
Globally, markets watched President-elect Donald Trump’s weekend warning of 100% tariffs on developing economies, targeting nations like China, Russia, India, and Brazil. While the U.S. dollar strengthened against several currencies, much of its gain came from other factors, including political strife in France, where budget debates pushed the euro below $1.05, down 0.7%.
Treasury Yields and Manufacturing Data
Treasury yields held steady after early fluctuations, with the 10-year yield settling at 4.19%. A report showed U.S. manufacturing contracted again in November, but less than economists expected, reflecting modest improvement in economic conditions.
Jobs Data and Economic Outlook
This week, critical jobs data, including the November employment report, could shape expectations for the Federal Reserve’s next moves. Economists anticipate strong hiring numbers, rebounding from October’s slower growth, which was impacted by hurricanes and labor strikes.
“We now find ourselves in the middle of this Goldilocks zone, where economic health supports earnings growth while remaining weak enough to justify potential Fed rate cuts,” said Mark Hackett, chief of investment research at Nationwide.
Global Markets Rally Ahead of Trump’s Inauguration
Chinese markets led international gains, with indexes rising 0.7% in Hong Kong and 1.1% in Shanghai. Manufacturing data indicated a surge in export orders, possibly driven by efforts to beat potential tariff hikes from Trump’s upcoming administration.
As Wall Street balances domestic optimism with global uncertainties, tech stocks remain the driving force behind its record-breaking momentum.
