The Nasdaq Composite index rose to a record high on Monday, boosted by gains in Intel, Super Micro Computers and Tesla.
At the time of writing, the Nasdaq Composite index was nearly 1% higher, while the S&P 500 index rose 0.2%. The Dow Jones Industrial Average was 0.3% lower on Monday.
Tech stocks jumped on Monday as Tesla and Intel gained sharply. Shares of Super Micro Computers also surged 27% during Monday’s session.
“Investors will now be considering how much exposure to run in the lead-up to the year-end,” David Morrison, senior market analyst at Trade Nation said.
The general expectation is for some kind of ‘Santa Rally’ to take equities higher through Christmas and into New Year. But there’s still a fair amount to consider before getting to that point.
Last month, both the Dow Jones and the S&P 500 rose sharply, and marked their best month of 2024. Most of the gains came in the postelection rally after Donald Trump secured a victory in this year’s presidential election.
On Friday, both indexes notched closing highs in a shortened trading session with low volumes.
Shares of Super Micro and Intel pop
Shares of Super Micro Computer popped more than 15% after a special committee said it found “no evidence of misconduct”, and that the firm’s financial statements were “materially accurate”.
The artificial intelligence server company said it has appointed a new chief accounting officer, and is searching for a new chief financial officer. The company’s stock jumped more than 31% on Monday.
Meanwhile, shares of Intel jumped 6% earlier on Monday after the chip maker announced that CEO Pat Gelsinger has retired.
The company named David Zinsner and Michelle Johnston Holthaus interim co-CEOs.
Tesla gains sharply
Shares of electric vehicle maker gained more than 3% on Monday after Tesla’s vice president of AI software tweeted on Saturday night that version 13 of the company’s “Full Self Driving” driver-assistance software has started rolling out to some customers.
“TSLA is clearly not just an automaker, as evidenced by its current market cap surpassing the aggregate value of the top 10 global automakers,” Stephen Gengaro, analyst at Stifel was quoted by CNBC.
“While we have confidence in TSLA’s Auto business, the significant value creation potential from its AI-based full self-driving capabilities and Cybercab (Robotaxi) underpin our positive outlook.”
Focus on Trump tariff and Fed policy
Trump on Sunday threatened to impose “100 tariffs” on the BRICS bloc of countries, which includes China.
Trump warned against BRICS nations’ attempts to form a new currency and shift away from the US dollar. He threatened to cut off the BRICS nations, which includes Brazil, Russia, India, China and South Africa, from US trade.
Last week, Trump had also said that the US government will impose steep tariffs on all imported goods from Mexico and Canada. He also threatened to impose another 10% tariff on China, on the already proposed 60%.
Meanwhile, investors will also focus on the US Federal Reserve’s policy meeting later this month. The market is expecting the US central bank to cut interest rates by 25 basis points this month.
Source: CME Group
“Interest rate cuts have been an undoubted tailwind for equities this year, even if the Fed tempered its reductions when compared to expectations back in January. But investors are far less dovish for 2025,” Morrison said.
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