Nasdaq 100: Nvidia and Broadcom Surge Today—Is This the Start of a New Uptrend?

Stocks Rise as Tech and Steel Surge, Traders Look to Inflation Data

Stocks moved higher on Monday, with technology and steel stocks leading the way as investors shrugged off trade policy concerns. The Dow Jones Industrial Average gained 97 points, or 0.2%, helped by a 4.8% jump in McDonald’s. The S&P 500 climbed 0.6%, while the Nasdaq Composite rose 1.2%, driven by strong performances in chipmakers and megacap tech stocks.

Traders remained cautious over former President Donald Trump’s renewed tariff threats. He proposed a blanket 25% tariff on steel and aluminum imports and warned of retaliatory tariffs against countries that tax U.S. goods. While uncertainty loomed, market attention turned to upcoming inflation data and Federal Reserve signals.

Will U.S. Steel, Nucor, and Cleveland-Cliffs Keep Climbing on Tariff Hopes?

 

Steel and aluminum stocks surged following Trump’s announcement. U.S. Steel climbed 3.3%, Nucor jumped 7.3%, and Cleveland-Cliffs soared 13.2%. Aluminum producer Alcoa also gained 3.2%.

The rally came as Japan’s Nippon Steel reportedly considered strategic changes to its bid for U.S. Steel, adding further interest to the sector. While tariffs often raise concerns about broader economic impact, investors bet on short-term gains for domestic steel producers. The question now is whether these stocks can hold onto their gains if tariff policies face legal or political hurdles.

Can Nvidia, Broadcom, and Micron Extend Their Tech Comeback?

Tech stocks posted solid gains as the sector rebounded from last month’s sell-off. Nvidia advanced 3.8%, while Broadcom and Micron each gained more than 3%.

The rally came after concerns eased over Chinese AI startup DeepSeek’s potential impact on the semiconductor industry. A broader semiconductor index tracking chipmakers rose 1.3%, signaling renewed investor confidence.

Megacap tech names also moved higher, with Alphabet, Amazon, and Microsoft each rising over 1%. Apple ticked up, while T-Mobile jumped 2.2% after announcing a new satellite-to-cell service partnership with SpaceX’s Starlink. Investors are now watching whether the tech rally has legs or if resistance levels will curb further upside.

Will Inflation Data Disrupt the Market’s Momentum?

The latest New York Federal Reserve survey showed inflation expectations holding steady at 3% for the next year. However, expectations for increases in food, gas, and rent prices rose, raising concerns about lingering inflationary pressures.

The market will closely watch Wednesday’s January Consumer Price Index (CPI) report, which could provide further insights into inflation trends. A hotter-than-expected reading could weigh on expectations for Federal Reserve rate cuts.

What Will Jerome Powell Signal About Rate Cuts?

Federal Reserve Chair Jerome Powell is set to testify before Congress on Tuesday and Wednesday. His comments will be scrutinized for signals on the Fed’s next move.

After Friday’s mixed jobs report, expectations for a March rate cut have faded, with most traders now anticipating a potential move in June. Powell’s remarks, along with Thursday’s Producer Price Index (PPI) data and weekly jobless claims, could influence rate expectations further. A more hawkish stance could trigger renewed market volatility.

Can McDonald’s and Rockwell Automation Help Drive the Next Leg Higher?

January Consumer Price Index (CPI) gained 4.8% despite reporting a drop in U.S. same-store sales, as global revenue exceeded expectations. Meanwhile, Rockwell Automation surged 9.6% on strong earnings.

Rally Fueled by Sector-Specific Strength

While Monday’s gains were driven by sector-specific strength, broader market sentiment will depend on upcoming inflation data and Fed guidance. With the S&P 500 holding key levels and investor sentiment improving, traders are watching whether earnings strength can support further upside—or if inflation and interest rate concerns will return to pressure stocks.

More Information in our Economic Calendar.