The S&P 500 closed higher on Monday, led by a strong gain in tech stocks, while the Dow Jones Industrial Average and the Nasdaq Composite also saw significant gains.
Tech stocks were boosted by a rally in semiconductor stocks, with Broadcom and Qualcomm leading the way. Broadcom shares added 5% to its recent surge, while Qualcomm shares rose over 3% after a jury found its central processors are properly licensed under an agreement with UK-based ARM Holdings.
The performance of the S&P 500 was driven by a 0.2% gain, with the Dow Jones Industrial Average adding 0.7% and the Nasdaq Composite rising 1%.
The Federal Reserve’s latest inflation data showed that the personal consumption expenditures (PCE) index rose 0.1% in November, slower than the 0.2% increase in October. The annual PCE rate came in at 2.4%, slightly below estimates of 2.5%. Despite this, the Fed signaled a cautious approach to monetary policy adjustments, emphasizing the need for continued progress on inflation before considering further rate cuts.
Rumble, a video-sharing platform, surged 81% after receiving a strategic investment of $775 million from cryptocurrency firm Tether. Eli Lilly’s shares also gained nearly 4% after the US FDA approved its weight-loss treatment, Zepbound, for obstructive sleep apnea.
In other news, crypto-related stocks including MicroStrategy, Coinbase, and Riot Platforms fell alongside a decline in bitcoin. However, Citi predicted that the weakness in bitcoin could be short-lived, expecting a positive backdrop in Q1 2024.