The S&P 500 and Nasdaq Composite closed at over one-week highs on Monday, supported by a rally in semiconductor stocks and optimism over a potential softening of the Trump administration’s tariff policies. The S&P 500 rose 0.55% to 5,975.38, and the Nasdaq climbed 1.24% to 19,864.98, while the Dow Jones Industrial Average edged down 0.06%. Technology and communication services sectors led gains, rising 1.44% and 2.13%, respectively, with chipmakers like Nvidia, AMD, and Micron Technology surging on the back of Microsoft’s $80 billion investment in AI-enabled data centers and Foxconn’s strong revenue report. Automakers such as Ford and GM also advanced amid speculation that Trump’s tariffs might target only critical sectors, reducing their broader economic impact. Despite a sharp rebound from December losses and strong 401(k) retirement fund flows, benchmark 10-year Treasury yields reached their highest levels since May, reflecting inflation concerns. Investors are closely monitoring economic data and Federal Reserve speeches this week for clues on monetary policy, with particular focus on the upcoming payrolls report. Markets will close Thursday for a national day of mourning for former President Jimmy Carter.

https://www.investing.com/news/economy-news/futures-edge-higher-as-chip-stocks-rise-3796977