Nasdaq 100: Nvidia and Micron Surge as Chip Stocks Drive Market Rebound

Stock Futures Rebound as Tech and Chip Stocks Surge

Stock futures pushed higher Monday, lifted by a rally in chipmakers and tech stocks. Investors shook off last week’s losses as Nvidia, Broadcom, and Micron Technology posted strong premarket gains. A narrower-than-expected tariff approach from President-elect Donald Trump further boosted sentiment, easing pressure on key sectors.

The market enters the second week of January trading with investors watching economic data and Fed signals closely. Despite lingering concerns over interest rates, early strength in semiconductors and airlines points to renewed optimism.

At 14:15 GMT, Dow futures are trading 43247.00, up 226.00 or +0.53%. S&P 500 Index futures are at 6037.50, up 48.00 or +0.80% and Nasdaq futures are trading 21732.75, up 216.25 or +1.01%.

Will Chip Stocks Keep Leading the Market Higher?

Semiconductors dominated early gains, driven by Foxconn’s record-breaking fourth-quarter revenue. Nvidia jumped 1.5%, while Broadcom climbed 2.5%. Micron surged 5%, adding to momentum in the sector. Taiwan Semiconductor and AMD each gained more than 5% and 3%, respectively.

The VanEck Semiconductor ETF (SMH) rose 2.5% in premarket trading, reflecting broad strength. With AI demand holding firm and chipmakers delivering strong results, traders are eyeing semiconductors as a potential leader in the coming sessions.

Can Airlines and Industrials Join the Rally?

American Airlines soared 4% after TD Cowen upgraded the stock to buy, citing strong upside potential. Boeing also jumped 2% following an overweight rating from Barclays, signaling confidence in recovery prospects for industrials.

Upgrades across the sector point to improving sentiment as investors rotate into areas poised for growth. Citigroup added 2% after Barclays raised its outlook for large-cap banks, suggesting financials could provide secondary support to tech-driven gains.

Is Relief on the Way for Automakers?

Auto stocks joined the rally after reports indicated Trump’s tariff plan would focus on critical imports, avoiding sweeping measures that could have hurt the industry. Ford climbed 2%, Lucid rose 3%, and Tesla advanced 2%.

This shift in policy could ease supply chain concerns and stabilize profit margins for automakers. Traders are betting that selective tariffs could limit downside risk for the sector, positioning automakers for potential outperformance.

What’s Driving Big Moves in Streaming and Clean Energy?

FuboTV rocketed 165% after confirming a joint venture with Disney’s Hulu + Live TV. The deal, which gives Disney 70% control, creates the second-largest streaming TV provider after YouTube TV.

Meanwhile, Plug Power jumped 6% following new Treasury rules offering tax credits for hydrogen producers. With clean energy incentives gaining traction, hydrogen stocks are emerging as attractive short-term plays.

Key Data Points to Watch This Week

While bullish sentiment is building, traders are bracing for key economic reports. The December jobs report, due Friday, will be closely watched for signals about labor market strength. JOLTS data on Tuesday and the ADP employment report on Wednesday could further shape expectations ahead of the next Fed meeting.

With the 10-year Treasury yield near 4.6%, bond markets remain a potential source of volatility. Callie Cox at Ritholtz Wealth Management warned that cracks in hiring could appear at any time, keeping bond traders on edge.

Short-Term Outlook – Bullish but Cautious

Early strength in chips, airlines, and automakers suggests markets are positioning for a short-term bounce. However, with economic data and bond yields in focus, volatility is likely to persist.

For now, the short-term outlook leans bullish, but traders should stay alert to shifts in labor market data or unexpected Fed signals that could cap gains.

More Information in our Economic Calendar.