Wall Street rises on AI optimism; Trump’s tariff stance boosts stocks, led by tech and automotive gains.
Wall Street’s main indexes increased on Monday, reaching one-week highs mainly due to optimism surrounding AI, which positively impacted semiconductor stocks.
The Dow Jones Industrial Average rose by 353.08 points, or 0.83%, to 43,085.21. The S&P 500 gained 74.43 points, or 1.25%, to 6,016.90, while the Nasdaq Composite increased by 343.99 points, or 1.75%, to 19,965.67.
Automakers experienced gains, with Ford rising by 1.6% and General Motors climbing by 4%. This was partly due to reports indicating that President-elect Donald Trump’s administration might take a less aggressive approach to tariffs, focusing only on sectors critical to national security. Nevertheless, Trump refuted this report.
As Trump’s inauguration approaches on January 20, investors are looking for clues about his economic policies, which are expected to benefit corporate America.
The Russell 2000 index, which tracks small-cap companies, rose by 0.9%. Analysts noted Trump’s unpredictable nature but indicated that final outcomes are often less dramatic than initial announcements.
Eight out of the 11 S&P 500 sectors saw advancements, particularly in tech stocks, which increased by 2%. Chipmakers benefitted from Microsoft’s plan to invest $80 billion in AI data centres. Nvidia, Advanced Micro Devices, and Micron Technology also experienced positive gains, contributing to a 3.7% rise in the Philadelphia Semiconductor index. U.S. stocks have rebounded sharply after experiencing losses in December and early January.
