Tech Stocks Leading Extended Rebound On Wall Street

Extending the significant rebound seen during last Friday’s session, stocks have moved sharply higher during trading on Monday. The tech-heavy Nasdaq is leading the charge once again, climbing further off the one-month closing low set last Thursday.

Currently, the major averages are just off their highs of the session. The Nasdaq is up 341.99 points or 1.7 percent at 19,963.66, the S&P 500 is up 63.87 points or 1.1 percent at 6,006.34 and the Dow is up 217.72 points or 0.5 percent at 42,949.85.

The markets are benefitting from continued strength among tech stocks after contract electronics giant Foxconn reported record fourth quarter revenue amid strong AI server demand.

Foxconn is an assembly partner with AI darling and market leader Nvidia (NVDA), which is spiking by 4.8 percent on the day. Chipmaker Micron (MU) is also posting a standout gain, skyrocketing by 10.4 percent.

Computer hardware and semiconductor stocks are turning in some of the tech sector’s best performances, with the NYSE Arca Computer Hardware Index and the Philadelphia Semiconductor Index surging by 4.0 percent and 3.8 percent, respectively.

Outside of the tech sector, substantial strength is also visible among airline stocks, resulting in a 3.7 percent jump by the NYSE Arca Airline Index.

American Airlines (AAL) has helped lead the sector higher after TD Cowen upgraded its rating on the airline’s stock to Buy from Hold.

Steel, retail and banking stocks are also seeing notable strength, while interest rate-sensitive utilities stocks are under pressure amid an increase by treasury yields.

The strength on Wall Street also comes after a Washington Post report suggested President-elect Donald Trump may scale back his tariff plans.

While Trump previously called for “universal” tariffs of as high as 10 or 20 percent on everything imported into the U.S., the Washington Post said his aides are now exploring plans that would apply tariffs to every country but only cover “critical imports.”

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. While Japan’s Nikkei 225 Index slumped by 1.5 percent, South Korea’s Kospi surged by 1.9 percent.

Meanwhile, European stocks have moved mostly higher on the day. The French CAC 40 Index is up by 1.6 percent and the German DAX Index is up by 1.0 percent, although the U.K.’s FTSE 100 Index is just below the unchanged line.

In the bond market, treasuries are extending the downward move seen over the course of the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 4.5 basis points at 4.640 percent.