Skip to content 
Overnight – Semi-conductor stocks drive stocks higher
The rally was primarily driven by semiconductor stocks and communication services, with most other S&P 500 sectors ending lower.
Semiconductor Rally: Chipmakers saw a significant boost due to Microsoft’s $80 billion investment plan for AI-enabled data centers and Foxconn’s strong fourth-quarter revenue. Nvidia, Advanced Micro Devices, and Micron Technology all experienced gains, contributing to the jump in the Philadelphia Semiconductor index.
Trump Administration Tariff Speculation: A report suggesting that the incoming Trump administration might adopt a less aggressive tariff stance than expected helped boost automaker stocks like Ford and General Motors. However, Trump later refuted this report.
Federal Reserve and Economic Outlook: Investors are closely watching for clues about the pace of monetary policy easing in 2025. Fed officials, including Governor Lisa Cook, have cautioned about ongoing inflation risks.
The market’s performance reflects a continuation of last year’s trend, with rallies concentrated in large-cap stocks. Tech stocks rose despite high benchmark 10-year Treasury yields, while the banking sector saw gains following a bullish rating for Citigroup and news of Fed Vice Chair Michael Barr’s resignation.
As Trump’s inauguration approaches, investors are seeking insights into his policies, which are generally viewed as potentially beneficial for corporate America and the U.S. economy. However, there are concerns that these policies could also drive up inflation, adding complexity to the economic outlook.
ASX SPI 8260 (+0.14%)
We are in for a quiet day again today with global economic data stacked towards the end of the week.
AU – Tuesday – building approvals, Wednesday – CPI, Thursday – Retail sales
US – Large number Fed speakers all week, Thursday – market closed in mourning for Jimi Carter, Friday – Payrolls
