- The S&P 500 and Dow erased earlier losses to close higher.
- Investors are eyeing fourth-quarter earnings as a potential catalyst to spark a rebound in the stock market.
- Tech stocks were hit by new AI chip export rules, and Nvidia shares dropped due to a report of potential chip delays.
US stocks were mixed on Monday, with the Dow Jones Industrial Average climbing almost 400 points while the Nasdaq 100 declined by about half a percent. The S&P 500 closed slightly positive.
Stock market investors are attempting a rebound from a monthlong decline as they grapple with surging bond yields. US Treasury yields have been fast approaching the psychologically important 5% level and surged after last week’s strong December jobs report release.
The potential catalyst for a rally could be the fourth-quarter earnings season, which officially kicks off Wednesday with the major US banks reporting results before the close.
David Kostin, a strategist at Goldman Sachs, said he expects the solid corporate earnings growth from 2024 to spill over into 2025 and is forecasting overall profit growth of 11%.
Tech stocks were dinged on Monday after the Biden administration released a new set of AI chip export rules in an ongoing bid to limit China’s and Russia’s access to the technology.
Shares of Nvidia declined by about 2%. That company was also hit by a report from The Information that said there are some delays for its next-generation Blackwell chips due to technical glitches that cause the GPU to overheat.
Here’s where US indexes stood at the 4 p.m. closing bell on Monday:
- S&P 500: 5,836.22, up 0.2%
- Dow Jones Industrial Average: 42,297.12, up 0.9% (359 points)
- Nasdaq composite: 19,088.10, down 0.4%
Here’s what else happened today:
- Energy stocks are off to a strong start in 2025 after back-to-back years of underperformance.
- Wall Street is starting to throw in the towel on another rate cut this year.
- The stock market is hitting extreme valuations. Get used to it, Bank of America says.
- One chart shows why both stocks and bonds are tanking at the same time.
- Talk of a sharp correction in the stock market is rising. Here’s how painful it could get.
- The tech bubble in AI-related stocks could inflate for two more years, according to a top tech analyst.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil jumped 2.81% to $78.72 a barrel. Brent crude, the international benchmark, was higher by 1.42%, at $80.89 a barrel.
- Gold declined 1.34% to $2,678.60 an ounce.
- The 10-year Treasury yield rose 2 basis points to 4.790%.
- Bitcoin declined 0.93% to $93,630.
