U.S. Stocks Up for Monday While Tech Stocks Remain Low
Tech stocks continue to trend bearish but the wider stock market is up slightly for Monday and could get a push later this week.
Quick overview
- U.S. stocks saw a rise on Monday, with the Dow Jones and S&P 500 both gaining 0.5% and the Nasdaq Composite increasing by 0.7%.
- Despite the overall market uptick, tech stocks like Oracle and Broadcom are struggling due to investor concerns over AI profitability and disappointing earnings reports.
- Upcoming economic data releases, including the November consumer price index and October sales figures, may influence market confidence.
- Tech stocks have faced significant declines recently, with Nvidia also experiencing a drop, leading to expectations of a bearish trend for the tech sector through the end of 2025.
On Monday, U.S. stocks climbed as indices ticked up, but the tech market is still suffering from increased fears over AI’s future, keeping major stocks like Oracle (ORCL) and Broadcom (AVGO) low.
This week signals a number of important economic data reports, and ahead of those releases, the stock market is elevated. However, tech stocks continue to struggle as the conversation among investors focuses on profit margins and disappointing earnings reports.
The Dow Jones added 0.5%, while the S&P 500 gained 0.5% as well, and the Nasdaq Composite rose 0.7%. Last week, the stock indices movements were mixed, with the market falling and rising throughout the week in response to the new rate cut announcement as well as earnings reports from major companies.
Economic Data Could Spur Market Growth
Later this week, the November consumer price index will be released and may help grow investor confidence in the stock market. Trading was volatile through last week, with tech stock suffering the most decline. Specifically, Oracle and Broadcom declined last week, with Broadcom falling 7% and Oracle losing 12.7%. Both companies released earnings reports for the quarter and faced severe scrutiny from investors worried about the AI market.
This week will also see the releases of October sales figures as well as November nonfarm payrolls. The stock market rose throughout September and October to record highs, faltering November and taking the cryptocurrency market down with it. December has been a decidedly low month for both markets, with tech stocks seeing weeks of low values.
Even some of the top-performing tech stocks for 2025 have trended poorly in recent weeks, like Nvidia (NVDA), which declined from $181 to $177 per share over the last four weeks. Investors continue to worry about profitability for AI-related stocks, and even when tech companies release promising earnings reports each quarter, the market is concerned about their heavy investments that they are making in AI development, purchases, and infrastructure. We anticipate the tech side of the stock market to trend bearish through the rest of 2025.
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