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Wall Street closed mixed on Monday after a choppy session. AI-powered semiconductor behemoths surged following positive news for this segment. A newspaper report that tariff policies of the incoming Trump administration are likely to be less restrictive than expected boosted confidence of market participants. The S&P 500 and the Nasdaq Composite recorded back-to-back gains while the Dow ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) was down 0.1% to close at 42,706.56 after a choppy session. At intraday high, the blue-chip index was up as much as 383 points. Notably, 16 components of the 30-stock index ended in negative territory while 14 in positive zone.
The tech-heavy Nasdaq Composite finished at 19,864.98, advancing 1.2% or 243.30 points due to strong performance by technology behemoths. The S&P 500 gained 0.6% to finish at 5,975.38. Six out of 11 broad sectors of the broad-market index ended in negative territory and five in positive zone.
The Technology Select Sector SPDR (XLK) and the Communication Services Select Sector SPDR (XLC) increased 1.3% and 1.1%, respectively. On the other hand, the Consumer Staples Select Sector SPDR (XLP), the Real Estate Select Sector SPDR (XLRE) and the Utilities Select Sector SPDR (XLU) decreased 1.1%, 1.4% and 1.1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 0.6%% to 16.04. A total of 17.36 billion shares were traded on Monday, higher than the last 20-session average of 12.37 billion. Advancers outnumbered decliners on the NYSE by a 1.01-to-1 ratio. On Nasdaq, a 1.10-to-1 ratio favored advancing issues.
AI-Centric Semiconductor Stocks Surge
On Jan 6, the contract electronics giant, especially AI (artificial intelligence)-powered chipset manufacturer, Hon Hai Precision Industry, which does business as Foxconn internationally, reported that the company’s fourth-quarter 2024 revenues climbed 15% year-over-year to approximately $63.9 billion. This data also marked the highest ever fourth-quarter revenues historically for the company.
Foxconn’s impressive top-line performance was driven by growth in its cloud and networking products — which includes AI servers. The company’s results confirm AI saga has more room to grow in 2025. Consequently, stock prices of major AI-centric chipsets manufacturers, such as NVIDIA Corp. (NVDA - Free Report) , Advanced Micro Devices Inc. (AMD - Free Report) and Broadcom Inc. (AVGO - Free Report) rallied 5%, 3.3% and 1.7%, respectively. Broadcom currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Trump Tariffs Like to be Less Restrictive
The Washington Post reported citing three anonymous sources that the Trump 2.0 administration is heading toward imposing universal tariffs of 10% or 20% to all countries, especially targeting China and Mexico. However, the range of imported goods and services likely to be less restrictive than previously expected.
The newspaper reported that imposition of tariffs on food items and cheap electronics products are less likely. However, tariffs will be imposed on imported goods and services that are critical to the nation’s security. According to The Washington Post, such items include the defense industrial supply chain (tariffs on steel, iron, aluminum and copper), critical medical supplies (syringes, needles, vials and pharmaceutical materials), and energy production (batteries, rare earth minerals and solar panels).
Economic Data
The Department of Commerce reported that factory orders (new orders for both manufacturing durable and non-durable goods) for November decreased 0.4% month-over-month, higher than the consensus mark of a decrease of 0.3%. However, the metric for October was revised upward to an increase of 0.5% from an increase of 0.2% reported earlier. November posted the decline of the metric in three out of the last four months.
New orders for manufactured durable goods in November decreased 1.2%. New orders for manufactured nondurable goods increased 0.4%. Shipments of manufactured durable goods in November decreased 0.2%. Shipments of manufactured nondurable goods increased 0.4%.
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Stock Market News for Jan 7, 2025
Wall Street closed mixed on Monday after a choppy session. AI-powered semiconductor behemoths surged following positive news for this segment. A newspaper report that tariff policies of the incoming Trump administration are likely to be less restrictive than expected boosted confidence of market participants. The S&P 500 and the Nasdaq Composite recorded back-to-back gains while the Dow ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) was down 0.1% to close at 42,706.56 after a choppy session. At intraday high, the blue-chip index was up as much as 383 points. Notably, 16 components of the 30-stock index ended in negative territory while 14 in positive zone.
The tech-heavy Nasdaq Composite finished at 19,864.98, advancing 1.2% or 243.30 points due to strong performance by technology behemoths. The S&P 500 gained 0.6% to finish at 5,975.38. Six out of 11 broad sectors of the broad-market index ended in negative territory and five in positive zone.
The Technology Select Sector SPDR (XLK) and the Communication Services Select Sector SPDR (XLC) increased 1.3% and 1.1%, respectively. On the other hand, the Consumer Staples Select Sector SPDR (XLP), the Real Estate Select Sector SPDR (XLRE) and the Utilities Select Sector SPDR (XLU) decreased 1.1%, 1.4% and 1.1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 0.6%% to 16.04. A total of 17.36 billion shares were traded on Monday, higher than the last 20-session average of 12.37 billion. Advancers outnumbered decliners on the NYSE by a 1.01-to-1 ratio. On Nasdaq, a 1.10-to-1 ratio favored advancing issues.
AI-Centric Semiconductor Stocks Surge
On Jan 6, the contract electronics giant, especially AI (artificial intelligence)-powered chipset manufacturer, Hon Hai Precision Industry, which does business as Foxconn internationally, reported that the company’s fourth-quarter 2024 revenues climbed 15% year-over-year to approximately $63.9 billion. This data also marked the highest ever fourth-quarter revenues historically for the company.
Foxconn’s impressive top-line performance was driven by growth in its cloud and networking products — which includes AI servers. The company’s results confirm AI saga has more room to grow in 2025. Consequently, stock prices of major AI-centric chipsets manufacturers, such as NVIDIA Corp. (NVDA - Free Report) , Advanced Micro Devices Inc. (AMD - Free Report) and Broadcom Inc. (AVGO - Free Report) rallied 5%, 3.3% and 1.7%, respectively. Broadcom currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Trump Tariffs Like to be Less Restrictive
The Washington Post reported citing three anonymous sources that the Trump 2.0 administration is heading toward imposing universal tariffs of 10% or 20% to all countries, especially targeting China and Mexico. However, the range of imported goods and services likely to be less restrictive than previously expected.
The newspaper reported that imposition of tariffs on food items and cheap electronics products are less likely. However, tariffs will be imposed on imported goods and services that are critical to the nation’s security. According to The Washington Post, such items include the defense industrial supply chain (tariffs on steel, iron, aluminum and copper), critical medical supplies (syringes, needles, vials and pharmaceutical materials), and energy production (batteries, rare earth minerals and solar panels).
Economic Data
The Department of Commerce reported that factory orders (new orders for both manufacturing durable and non-durable goods) for November decreased 0.4% month-over-month, higher than the consensus mark of a decrease of 0.3%. However, the metric for October was revised upward to an increase of 0.5% from an increase of 0.2% reported earlier. November posted the decline of the metric in three out of the last four months.
New orders for manufactured durable goods in November decreased 1.2%. New orders for manufactured nondurable goods increased 0.4%. Shipments of manufactured durable goods in November decreased 0.2%. Shipments of manufactured nondurable goods increased 0.4%.