On Monday, Eastern Time, the three major US stock indexes closed mixed, with a rebound in Technology stocks boosting the market. US President-elect Trump denied plans to narrow the scope of tariffs.

With Foxconn reporting quarterly revenue that exceeded expectations and set a new historical high, along with a series of bullish signals from the Consumer Electronics Show (CES), chip stocks emerged as one of the biggest winners of the day.

CFRA Research Chief Investment Strategist Sam Stovall indicated that the market is currently quite bullish on technology stocks, however, given the high valuations, interest rate outlook, potential adjustments in performance, and the new president taking office, volatility in the US stock market will likely increase this year.

Michael Green, portfolio manager at Simplify Asset Management, stated: "We seem to be back where we were last year, with the stock market's gains mainly concentrated in large technology stocks." He added that funding from retirement plans is helping to drive up the stock market.401(k)Funding from retirement plans is helping to boost the stock market.

Federal Reserve Governor Cook stated that, given the strong labor market and persistent inflationary pressures, policymakers can act more cautiously regarding interest rate cuts.

A report from The Washington Post on Monday also boosted market sentiment, stating that Trump's tariff policy would not be as widely applicable as initially feared, only covering key imported commodities. However, Trump later went on to deny this.

In the shortened trading week, investors remain focused on the Federal Reserve's interest rate policy outlook, maintaining cautious attitudes regarding its possible impacts. Additionally, the New York Stock Exchange will be closed on Thursday to mourn the passing of former President Jimmy Carter.

Traders are preparing for the non-farm payroll report set to be released on Friday, which is expected to show that employers have slowed hiring at the year's end, yet the labor market remains healthy despite the cooling. This data might not change the Federal Reserve's current stance, which is to slow down interest rate cuts amid robust economic conditions and gradually declining inflation.

Market Dynamics

At the close, $Dow Jones Industrial Average (.DJI.US)$ A drop of 25.57 points, a decline of 0.06%, closing at 42706.56 points. $Nasdaq Composite Index (.IXIC.US)$ Increased by 243.30 points, with an increase of 1.24%, closing at 19864.98 points; $S&P 500 Index (.SPX.US)$ Increased by 32.91 points, with an increase of 0.55%, closing at 5975.38 points.

The U.S. stock Industry ETFs generally rose, with the semiconductor ETF up by 3.32%, the global technology stock index ETF up by 1.79%, the technology industry ETF up by 1.27%, while the financial sector ETF closed down by 0.31%.

Among the 11 S&P 500 Index sectors, 7 closed lower, the Communications Services sector and the Information Technology sector rose by 2.13% and 1.44% respectively, the Financial sector fell by 0.42%, the Medical Care sector remained flat, and the Real Estate sector decreased by 1.4%.

Performance of Popular Stocks

Large technology stocks generally rose, with NVIDIA up 3.4%, Meta up 4.2%, Google A up 2.65%, Amazon up 1.53%, Microsoft up 1.06%, Apple up 0.67%, and Tesla up 0.15%.

Chip stocks strengthened, with Micron Technology rising 10.45%, Super Micro Computer up 9.36%, ASML ADR up 7.58%, STMicroelectronics ADR up 7.33%, and AMD rising over 3.3%.

Bank stocks collectively rose, with Morgan Stanley up over 2%, Citigroup up 2.5%, and Bank of America up 1.32%. Federal Reserve Vice Chair for Supervision Michael Barr abruptly announced his early resignation on Monday; Barr had sought to impose a series of strict regulations on the largest banks in the USA.

The Nasdaq China Golden Dragon Index closed down 1.16%, with most China Concept Stocks declining. Tencent ADR fell nearly 8%, MINISO dropped over 12%, Kingsoft Cloud fell over 5%, Li Auto dropped over 3%, while iQIYI and NIO rose over 1%, and PDD Holdings rose over 2%.

Arbe Robotics rose over 50% after announcing a collaboration with NVIDIA, and will showcase its 'revolutionary ultra-high-definition Radar' at this week's Consumer Electronics Show.

Company news

[Qualcomm launches new AI chip with PC prices starting at $600]

On Monday local time, at the Consumer Electronics Show (CES) held in Las Vegas, $Qualcomm (QCOM.US)$ announced the launch of the new AI Chip Snapdragon X, designed to provide powerful computing capabilities for personal computers (PCs), enabling them to run the latest AI software and allowing more users to enjoy an AI-powered PC experience at a lower cost.

According to reports, the Snapdragon X is manufactured using a 4-nanometer process technology, equipped with Qualcomm's Oryon CPU, featuring 8 cores with a maximum clock speed of up to 3 GHz, providing powerful computing performance for the next generation of PCs. Additionally, PC manufacturers including Acer, ASUS, Dell Technologies, and LENOVO GROUP will adopt this AI Chip, and PCs equipped with Snapdragon X are expected to be priced as low as $600, with products anticipated to launch in early 2025.

[MicroStrategy has purchased Bitcoin for nine consecutive weeks, with total holdings amounting to approximately 44.3 billion USD]

$MicroStrategy (MSTR.US)$ Purchased $0.101 billion worth of Bitcoin, having previously announced plans to use perpetual preferred stock, common stock, and debt to acquire more Cryptos. This enterprise software company based in Tysons Corner, Virginia has purchased Bitcoin for nine consecutive weeks, and its co-founder and Director Michael Saylor hopes to advance its strategy of holding Bitcoin. The company currently holds approximately $44.3 billion in Bitcoin.

According to documents from the U.S. Securities and Exchange Commission, MicroStrategy purchased 1,070 Bitcoins at an average price of approximately $94,000 on December 30 and December 31. The company stated on Friday that it plans to raise up to $2 billion in the first quarter through the issuance of one or more perpetual preferred stocks. The preferred stock issuance is part of a capital plan to raise $42 billion through public stock offerings and the issuance of convertible bonds by 2027.

[Intel's first Intel 18A process chip is unveiled, and the Panther Lake processor is confirmed for release in the second half of the year]

On January 6, $Intel (INTC.US)$ During the CES 2025 speech, Intel's interim co-CEO Michelle Johnston announced that the first Intel 18A process chip — the Intel Panther Lake processor will be released in the second half of 2025. Johnston also showcased samples of the Panther Lake chip and stated that the chip is already in testing, and she is very satisfied with the 18A. Johnston announced that the Intel 18A process will be "released later this year." She stated, "Intel will continue to enhance the AI PC product line in 2025 and beyond, providing customers with leading Intel 18A product samples and ramping up mass production in the second half of 2025."

[AMD releases the Ryzen 9 9950X3D / 9900X3D processors]

$Advanced Micro Devices (AMD.US)$ During the CES 2025 event, a press conference was held to officially launch two flagship Ryzen 9000 series X3D processors, the 16-core 32-thread Ryzen 9 9950X3D and the 12-core 24-thread Ryzen 9 9900X3D, both of which use the Zen5 architecture and AMD's X3D technology, boasting 128MB of L3 cache, aiming to become the strongest CPU in the gaming and creation fields.

Editor/rice