Tech Stocks Surge as Bitcoin Hits New High

Megacap tech shares boosted the S&P 500 and Nasdaq as U.S. Treasury yields steadied. Bitcoin soared after President-elect Trump suggested a strategic bitcoin reserve. Investors are closely watching central bank movements, with a Fed rate cut expected. China's slow retail sales added pressure for Beijing's economic stimulus.

Megacap tech shares fueled a rise in the S&P 500 and the Nasdaq on Monday, as U.S. Treasury yields held steady, preparing investors for an eventful week for central banks. A notable surge in Bitcoin followed President-elect Donald Trump's proposal to create a strategic bitcoin reserve.

The FANG group of stocks outperformed, with a gain of 2.7%, as highlighted by Oliver Pursche of Wealthspire Advisors. Pursche anticipates a favorable investment climate under the Trump administration despite recent economic uncertainties, as investors foresee a quarter-point rate cut at the Fed's upcoming policy meeting.

Weak retail sales data from China exacerbated concerns over economic growth, reinforcing calls for increased stimulus from Beijing. Meanwhile, European markets closed lower, heavily influenced by luxury and energy stocks after China's report. Investors are also analyzing the fallout from Moody's downgrade of France's credit rating.

(With inputs from agencies.)