Stocks went up on Monday, kicking off a shorter week due to the holiday. The rise was mainly driven by strong performances in the tech sector, with Microsoft and Nvidia leading the way.
The Dow Jones Industrial Average gained 203.76 points, or 0.58%, closing at 35,151.04. The S&P 500 increased by 0.74%, finishing at 4,547.38, and the Nasdaq Composite climbed 1.13% to close at 14,284.53. This marked the fifth consecutive day of gains for the S&P 500 and the Nasdaq, both known for their tech-heavy components.
Microsoft shares rose by 2%, reaching a new 52-week high. This was attributed to CEO Satya Nadella’s announcement that Sam Altman, former chief of OpenAI, would lead a new AI research team at Microsoft.
Nvidia, a chipmaker, also saw a 2.3% increase, closing at an all-time high just before its earnings report on Tuesday.
The tech and communication services sectors were the top gainers in the S&P 500, with increases of 1.5% and 1%, respectively. Notable performances included a 5.2% jump for Palo Alto Networks, a 2.1% climb for Intel, a 5.6% rise for Paramount, and a 1.8% gain for Netflix.
U.S. markets will be closed on Thursday for Thanksgiving, and Friday will be a shortened trading day.
Despite historical choppiness around the Thanksgiving holiday, November remains the best-performing month for the S&P 500.
Investor optimism persists into the year-end, especially after last week’s lower-than-expected U.S. inflation data eased concerns about high prices. This also raised hopes that the Federal Reserve might halt interest rate hikes.
Yields continued to decline on Monday after a strong auction of 20-year Treasury notes.
Tom Hainlin, a senior investment strategist at Ascent Private Capital Management of U.S. Bank, highlighted the recent rally’s support from a drop in Treasury yields, although he acknowledged potential volatility due to fiscal spending and deficit issues.
Wall Street will closely watch the release of the latest Fed minutes scheduled for Tuesday.