Wall Street Hits Risk-On Mode as Tech Stocks Soar Ahead of Nvidia’s CES Speech

Saurabh1 day ago

Wall Street is embracing a risk-on sentiment, with traders enthusiastically buying up technology stocks, especially in the semiconductor sector, as they anticipate key insights from Nvidia Corp. CEO Jensen Huang’s speech at the Consumer Electronics Show (CES) in Las Vegas on Monday.

Tech and Semiconductors Lead the Charge

By midday trading, tech-linked indices outperformed, with the Nasdaq 100 climbing 1.3% and the iShares Semiconductor ETF (SOXX) surging over 4%, aiming for its strongest session since mid-September. Leading the charge, Micron Technology Inc. shares surged 12.1% amid expectations for strong AI demand, while Nvidia gained 4.8%.

Economic News and Market Reactions

In other notable news, The Washington Post reported that Donald Trump’s economic team is exploring a more targeted version of its universal tariff plan, focusing on specific sectors rather than a broad measure on all imports. This caused the dollar to soften by 0.5%.

Meanwhile, Federal Reserve Vice Chair for Supervision, Michael Barr, who is known for advocating stricter banking regulations, announced he will step down in February, although he will retain his seat on the Board of Governors. Barr’s departure raised concerns about potential regulatory clashes with the incoming administration, which leans toward looser banking regulations. In response, regional bank stocks saw positive movement, with the S&P SPDR Regional Banking ETF (KRE) rising 1.6%.

Commodity and Cryptocurrency Markets

In the commodities markets, natural gas prices surged another 7%, driven by an extension of cold temperatures, while oil prices dipped by 0.7%, potentially ending a five-day winning streak.

Cryptocurrency markets turned bullish again as Bitcoin regained the $100,000 mark, pushing crypto-linked stocks higher. Coinbase Global Inc., CleanSpark Inc., and MicroStrategy Inc. all saw gains of approximately 6%.

Performance in Major U.S. Indices and ETFs

As of 1:15 p.m. ET, major indices showed robust gains:

Nasdaq 100: +1.2% to 21,584.34
S&P 500: +0.9% to 5,996.40
Russell 2000: +0.7% to 2,284.16
Dow Jones: +0.2% to 42,832.88

Stock Movements of Note

Paycor HCM Inc. saw a 24.9% surge, fueled by rumors of a potential acquisition by Paychex Inc..
Palantir Technologies Inc. dropped 5.17% after receiving a cautious note from Morgan Stanley.
FuboTV Inc. skyrocketed by 244.9% after Walt Disney Co. announced it would combine its Hulu + Live TV business with Fubo.

In ETF performances:

SPDR S&P 500 ETF (SPY): +0.9% to $597.33
SPDR Dow Jones ETF (DIA): +0.4% to $429.05
Invesco QQQ Trust (QQQ): +1.3% to $525.31
iShares Russell 2000 ETF (IWM): +0.9% to $226.44
Technology Select Sector SPDR Fund (XLK) outperformed, rising 1.7%, while the Utilities Select Sector SPDR Fund (XLU) lagged, down 0.7%.

Outlook

As we move forward, the market’s optimism surrounding semiconductors and tech stocks suggests a continued bullish trend, especially with potential insights from Nvidia’s CES speech. While broader market concerns such as tariff strategies and banking regulations remain, investor sentiment is currently favoring growth sectors, particularly technology.