Nasdaq 100: Nvidia, Broadcom Surge as Intel Soars on Takeover Speculation

Wall Street Climbs as Traders Brace for Trump Presidency

Wall Street’s major indexes traded higher Friday morning, with the S&P 500 and Dow Jones Industrial Average poised for their most significant weekly gains since November. Investor optimism surrounding the incoming Trump administration’s anticipated pro-growth policies fueled the rally.

The Dow Jones rose 355.82 points, or 0.82%, to 43,508.16. The S&P 500 added 52.44 points, or 0.89%, reaching 5,990.17, while the Nasdaq Composite climbed 254.87 points, or 1.30%, to close at 19,588.75.

Which Sectors Drove the Market Gains?

Nine of the 11 S&P 500 sectors advanced, with technology leading the charge. The sector gained 1.4%, recovering from prior losses. Semiconductor stocks like Nvidia and Broadcom surged 3.8% and 2.3%, respectively, after Barclays raised price targets.

Intel saw an 8.2% jump on takeover speculation, while the broader chip index climbed 1.9%.

Banking stocks also outperformed, supported by better-than-expected earnings and cooling inflation concerns. The S&P 500 banking index gained 6.1% this week, with regional banks outperforming, up 7.6%.

The energy sector benefited from oilfield services provider SLB, which rallied 5.7% after strong fourth-quarter earnings. Meanwhile, utilities and real estate posted smaller gains of 0.31% and 0.35%, respectively.

What Are Investors Watching Ahead of Trump’s Inauguration?

With President-elect Donald Trump’s inauguration set for Monday, traders are looking for clarity on tax cuts, tariffs, deregulation, and immigration. Analysts expect his policies to be broadly pro-growth, potentially boosting corporate earnings and economic expansion.

Despite optimism, concerns remain. Proposed tariffs could lead to trade wars and higher prices, pressuring the Federal Reserve to reconsider monetary policy easing. Cleveland Fed President Beth Hammack noted that inflation remains a challenge, even as recent economic data shows resilience.

What’s the Economic Data Telling Us?

December housing data showed solid growth in single-family homebuilding, boosting the housing index by 1%. Elsewhere, fourth-quarter earnings from Truist Financial impressed, lifting shares 5.5%, while J.B. Hunt slid 6.5% after missing profit estimates.

Social media stocks, including Meta and Snap, traded modestly higher after the Supreme Court upheld laws potentially forcing TikTok’s U.S. sale or ban. However, those gains have been erased.

Market Outlook

The S&P 500 is on track for a strong close to the week, signaling renewed risk appetite. Traders are awaiting Trump’s policy details at the inauguration, which could solidify or temper market momentum. With the Federal Reserve expected to hold rates steady in January, equity markets may have room to rally, provided inflation and geopolitical risks remain contained.

More Information in our Economic Calendar.