Dow Rises More Than 150 Points, Nvidia Leads Chip Stocks Higher
Stocks jumped on Monday, recovering from last week’s losses as chipmakers jumped.
The Dow Jones Industrial Average traded 187 points higher, or 0.4%. The S&P 500 climbed nearly 1.2%, and the Nasdaq Composite advanced 1.9%.
Chip stocks led the session’s gains after Foxconn announced record fourth-quarter revenue. Nvidia jumped nearly 5%, putting the chipmaker on track for a record close. Broadcom gained 2%, while Micron Technology advanced more than 11%.
“The market is, I think, being pretty optimistic about tech right now, looking for earnings growth of 20% this year versus 12.8% for the market ... but valuations do appear restrictive,” CFRA Research chief investment strategist Sam Stovall said. “The group will probably not rise based on P/E multiples, but will have to rise based on organic earnings growth.”
Source : CNBC