Tech Stocks Lead Festive Rebound in U.S. Markets

U.S. stocks opened the week strong, particularly in the technology sector, driven by Micron Technology's forecasts and a favorable inflation report. Concerns over tariffs are outweighed by optimism in AI and a robust economy. The S&P 500 is nearing record highs as the holiday approaches.

U.S. stocks surged as the holiday-shortened week began, with a remarkable rebound in technology shares. Almost all 11 S&P 500 sectors experienced gains, fueled by Micron Technology's impressive forecasts and a favorable inflation report. The S&P 500 and Dow are less than 1% below record highs.

Nvidia's 1.2% rise significantly boosted the S&P 500, as the company prepares to ship advanced AI chips to China. Meanwhile, Micron soared 3.8%, and the Philadelphia SE Semiconductor Index rose 1.1%. Ken Polcari noted potential fluctuations but anticipates continued rallies.

December is traditionally strong for stocks, with optimism surrounding AI, economic resilience, and anticipated easing of monetary policy driving market gains. Light trading is expected ahead of the holiday, with key economic data, including GDP and jobless claims, pending release.