U.S. stocks mostly rose on Monday, with the S&P 500 and Nasdaq Composite achieving back-to-back gains, driven by Nvidia reaching a record closing high. The pan-European Stoxx 600 index also advanced nearly 1%, although it pulled back after President-elect Donald Trump downplayed concerns over potential tariffs. In a notable report, Foxconn announced record fourth-quarter revenue, reflecting a 15% year-over-year increase, indicating ongoing strength in the artificial intelligence sector and contributing to rising stocks for Nvidia and other semiconductor companies.
Volkswagen and Xpeng’s shares increased following their agreement to share super-fast charging networks for electric vehicles. Meanwhile, Canadian Prime Minister Justin Trudeau announced his intent to step down from leading the Liberal Party but will remain prime minister until a successor is chosen. As the 10-year Treasury yield increases, Morgan Stanley advised investors to favor quality stocks to navigate potential market volatility.
Overall, semiconductor stocks surged on AI optimism, with Nvidia’s shares rising 3.4% to close at $149.43, as investors look ahead to CEO Jensen Huang’s keynote at the Consumer Electronics Show. However, market valuations may pose a challenge despite positive momentum.
