Tech Surge Propels U.S. Stocks to New Heights

U.S. stocks soared on Monday, powered by technology sector gains, bringing the S&P 500 and Dow close to record highs. Positive forecasts from Micron Technology and Nvidia contributed to the tech rally. Optimism about AI and the U.S. economy marked a strong start to the holiday-shortened trading week.

U.S. stocks experienced significant gains on Monday, driven primarily by a rebound in the technology sector. This upswing placed the S&P 500 and Dow just shy of record highs set in December 11. Positive reports from Micron Technology and Nvidia significantly contributed to the wave of enthusiasm.

Notably, Nvidia's commitment to ship powerful AI chips to China by mid-February boosted the tech sector. Meanwhile, the Dow witnessed an increase of 227.79 points, and the S&P 500 rose by 43.99 points. Historically, December is a robust month for stocks, marked by the 'Santa Claus rally', which seems to be repeating this year.

While Ken Polcari of Slatestone Wealth suggests cautious optimism, the U.S. stock market appears set for a promising end to the year. Anticipation of favorable economic data, including third-quarter GDP, adds to the bullish outlook. Light trading volumes are expected ahead of the holiday, with market closures scheduled for Christmas.

(With inputs from agencies.)