Tech Surge and Economic Signals Propel Wall Street Upward

U.S. stocks opened the holiday-shortened trading week positively, driven by a sharp rally in technology stocks. Several sectors of the S&P 500, industry-leading chipmaker gains, favorable economic data, and corporate developments influenced the indices' rise. The anticipation of holiday market trends and upcoming economic reports continued to shape investor outlook.

U.S. stocks kicked off the holiday-shortened week on a high note, led by technology stocks that continued their rebound. The rally was fueled partly by Micron Technology's strong forecast and a cooler-than-expected inflation report, bringing the S&P 500 and Dow Jones close to their record levels set earlier this month.

Nvidia shares surged significantly, boosting the S&P 500, as anticipation grows for the company's plan to ship AI chips to China by mid-February. Investors are factoring in optimism about AI developments and a resilient U.S. economy, which overshadowed tariff concerns, setting the stage for a potential third year of gains for the main U.S. indexes.

Anticipation of upcoming economic data releases and the holiday market trends keep trading volumes thin as investors adjust to insights on economic health and monetary policy. Concurrent corporate activity, like Tesla's high performance and major deals involving companies such as Warner Bros Discovery and Clearwater Analytics, further influenced market dynamics.

(With inputs from agencies.)