US Stocks Start Year Sharply Higher
US stocks were sharply higher on the first trading day of the year, erasing losses from the previous session and approaching recent record highs as positive developments for the AI sector limited concerns over their high valuations.
The Nasdaq 100 gained over 1%, while the S&P 500 gained over 0.5% and the Dow edged higher. Companies with exposure to AI and its infrastructure were higher following the strong debut for Shanghai Biren shares in Hong Kong, while Baidu announced it filed an IPO for its chip unit. Nvidia, Alphabet and Broadcom added over 2% each.
Additionally, US President Trump postponed tariffs on selected furniture goods, lifting RH and Wayfair by over 2% and supporting the view that the White House may more prudent with trade barriers this year. Also, Tesla gained 1% despite missing global deliveries expectations in the fourth quarte.
Broader sectors were supported by the lingering view of robust growth and lower interest rates by the Federal Reserve this year.
Source: Tradingeconomics.com