US stocks saw a strong rally on Monday, led by tech giants like Nvidia, Alphabet, and Meta Platforms, as investors reignited their enthusiasm for artificial intelligence (AI). The boost in tech stocks coincided with the kickoff of the 2025 Consumer Electronics Show (CES), with Nvidia’s CEO Jensen Huang slated to deliver the event’s opening keynote.
Tech Stocks Soar Amid AI Hype
Tech stocks surged as the excitement around AI ramped up, propelling companies at the forefront of the AI revolution, such as Nvidia and Alphabet, to strong gains. Shares of Nvidia jumped as much as 5%, bringing them close to a record high. This helped lift the broader Nasdaq 100 Index, which rose more than 1%. The S&P 500 also posted a gain, rising more than 0.5%, while the Dow Jones Industrial Average closed slightly lower.
The rally is largely driven by renewed optimism surrounding AI, with investors expecting updates on the development and application of AI technologies. Nvidia’s Huang is expected to highlight the company’s data center business and provide insights into its growing robotics initiatives during his CES keynote.
Vivek Arya, an analyst at Bank of America, commented on the upcoming address, noting that he expects Nvidia to delve into its “physical AI” theme, focusing on both hardware and software advancements in robotics.
Chip Stocks Surge on Strong Earnings Reports
The chip sector saw a significant boost on Monday, following a strong earnings report from Foxconn, the Taiwanese electronics contract manufacturer. Foxconn reported a 15% year-over-year growth in revenue, further fueling investor confidence in semiconductor stocks.
Shares of chip companies also saw impressive gains, with Micron Technology rising 8%, ASML climbing 6%, and Taiwan Semiconductor jumping 11%. The rally was driven by optimism surrounding the growing demand for chips, especially in areas like AI, data centers, and robotics.
US Dollar Volatility Amid Trade News
The US dollar experienced significant volatility on Monday after reports from The Washington Post suggested that the incoming Trump administration would scale back its previously aggressive tariff plans. Investors feared that the tariff measures could reignite inflation and hinder the Federal Reserve’s ability to reduce interest rates.
However, former President Trump pushed back against the report, calling it “incorrect” and claiming that the story misrepresented his tariff strategy. Trump posted a rebuttal on Truth Social, denying that his tariff policy would be softened.
Shortened Trading Week
The stock market faces a shortened trading week, as it will be closed on Thursday in observance of former President Jimmy Carter’s passing on December 29. This closure adds to the volatility expected during the week, as investors digest both domestic economic news and international developments.
Looking Ahead
The 2025 CES continues to be a focal point for tech stocks, with many anticipating further breakthroughs in AI, robotics, and other next-generation technologies. Investors will be closely watching Huang’s keynote for any new announcements, especially regarding Nvidia’s robotics strategy and its continued role in the AI-driven tech boom.
In the coming days, we may also see how global trade policies, particularly in relation to the Trump administration’s stance on tariffs, influence both market sentiment and the value of the US dollar.
Related topics：
