Short Holiday Week Starts Off with Nasdaq Climbing 0.5%
Stocks are up today but it is too soon to call it a rally as the shortened holiday week begins on a high note.
Quick overview
- The stock market shows slight gains in early trading on Monday, with the Nasdaq up 0.5% and the S&P 500 up 0.4%.
- Analysts remain cautious, indicating that the market is not bullish and a Santa Claus rally is unlikely.
- AI stocks are experiencing a positive shift, with Oracle and Nvidia showing notable gains due to recent developments.
- Micron Technology continues to perform well, reporting a 60% revenue increase and gaining 2.78% on Monday.
The stock market is positive in early morning trading for Monday, with the Nasdaq up 0.5%, and the S&P 500 adding 0.4%, but these indices may have trouble maintaining momentum.
All three major U.S. stock indices climbed slightly on Monday at the start of a shortened holiday week of trading. The Dow added 0.1%, continuing its low level increases from last week, while the Nasdaq added to Friday’s 1.38% increases with another 0.5%.
The small upward movement is not enough for analysts to say that the market is bullish or that a tech rally is imminent. Nor do we anticipate a Santa Claus rally in these last few days before the Christmas holiday. Instead, muted market movement continues after a mixed week of stock trading.
Artificial Intelligence Stocks Now Performing Better
Investors’ sentiment over AI stocks appears to have shifted, with Oracle (ORCL) up 2% in premarket trading Monday, continuing its sharp uptick from Friday. This bullish shift came after TikTok negotiated to sell its U.S. operations to Oracle and Silver Lake, who will run the company stateside in a joint operation.
Nvidia (NVDA) continues to recover after suffering under intense AI market fears for weeks. The company is benefiting from new U.S. trade legislation that will allow the company to sell its high end processing chips, the H200s, to China if they pay the United States a 25% fee. Nvidia added 2.1% in remarket trading and has been bullish since Thursday last week.
Even Advanced Micro Devices (AMD) is looking better this week as AI fears begin to subside. The company’s stock is up 1.46% in premarket trading for Friday and is part of a larger bullish tech shift that began on Thursday last week. Investors may be growing more confident in AI-related stocks, and analysts are still bullish about this tech niche where future growth is concerned.
Micron Technology (MU) has been one of the better performing tech stocks recently, with gains of 6% on Friday and another 2.78% on Monday. The company provides digital storage and surpassed Wall Street expectations during its latest quarterly earnings report which showed a revenue increase of 60% from the previous year.
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