Shares of Microsoft fell almost 1% after the company said it’s cutting 4,800 jobs, or 2.1% of its global workforce.
- The S&P 500 ended 0.8% higher, while the Nasdaq 100 added 1.3% and the Dow Jones Industrial Average rose 0.3%.
- Nvidia Corp. said “our road map is intact” after a report on server delays.
- SK Hynix Inc. kicked off the process for its $28 billion U.S. listing.
U.S. stock indices ended higher on Monday, with the Dow Jones index hitting record highs as technology stocks reversed course from previous week’s declines.
The S&P 500 ended 0.8% higher, while the Nasdaq 100 added 1.3% and the Dow Jones Industrial Average rose 0.3%. The Russell 2000, which tracks stocks with small market capitalizations, rose 0.5%.
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) rose 0.9% and Invesco QQQ Trust (QQQ) ended Monday around 1.4% higher, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) added 0.4%.
Meanwhile, the VanEck Semiconductor ETF (SMH) rose 2%. The Philadelphia Semiconductor Index (SOX) rose 2.2%, signaling a mild rebound from previous week’s losses.
Retail sentiment on Stocktwits for SPY, QQQ and DIA was ‘bullish’ with ‘normal’ to ‘high’ message volumes.
US Market Drivers
| Index | Move | Close |
| Dow Jones Industrial Average | 0.3% | 53,055.91 |
| S&P 500 | 0.8% | 7,537.43 |
| Nasdaq 100 | 1.3% | 29,697.87 |
Chipmaker shares jumped on Monday, led by gains in Nvidia (NVDA) and Broadcom (AVGO) stock, supporting the Nasdaq. The State Street Technology Select Sector SPDR ETF (XLK) climbed almost 2%, led by a 7% climb in Western Digital (WDC) and a 2.8% jump in Teradyne (TER).
Technology and chipmaker stocks dropped significantly in the previous week over rising investor concerns on the longevity of AI demand and the need for a better degree of justification for sky high capex plans.
“This week, investors will look for signs that tech’s recent volatility is stabilizing,” said Mark Haefele, chief investment officer at UBS, in an interview with Bloomberg. “Markets will also assess whether recent pressure on hyperscaler shares changes the perceived path for AI capital expenditure.”
Morgan Stanley strategists warned in their latest note that momentum in chip stocks is fading, as investors shift focus to hyperscalers that have been laggards.
According to a Bloomberg report citing a Morgan Stanley note, the firm picked Microsoft Corp. (MSFT), Amazon.com Inc. (AMZN), and Meta Platforms Inc. (META) as its favorites among AI hyperscalers.
Meanwhile, Microsoft shares were in focus after the company announced layoffs that targeted about 2.1% of its global workforce.
Trending Stocks To Watch
Nvidia (NVDA): A day after a report claimed that one of Nvidia Corp.’s (NVDA) key next-generation products had been delayed, the chipmaker pushed back, saying its roadmap remains on track.
Lockheed Martin (LMT): The defense contractor entered a definitive agreement to purchase naval systems specialist Ultra Maritime for $3.45 billion, marking a significant step to fortify its capabilities in the rapidly evolving undersea defense market.
TeraWulf (WULF): The company announced a 20-year lease agreement with Anthropic.
SpaceX (SPCX): Shares of Space Exploration Technologies Corp. (SPCX) were in focus on Monday, ahead of the company’s inclusion in the Nasdaq 100 index on Tuesday.
Broadcom (AVGO): Apple (AAPL) signed a long-term pact with the company to secure its chip supply amid a shortage of semiconductor components due to AI demand.
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