Stocks Advance as Nvidia Closes at a Record – US Market Wrap

Stocks rose at the start of the first full trading week in 2025, fuelled by a rally in the world’s largest technology companies. The dollar recovered after President-elect Donald Trump declared that his tariff plan would not be scaled back.

While dip buying drove gains in the S&P 500’s most influential group, the majority of the benchmark’s shares fell. Nvidia Corp. hit a record high ahead of CEO Jensen Huang’s speech. Banks rose on deregulation optimism after Michael Barr stepped down as the Federal Reserve’s vice chair for supervision. The news also accelerated the steepening of the Treasury curve, with longer maturities underperforming. The yield on 30-year bonds reached its highest level since late 2023.

The S&P 500 increased by 0.6%. The Nasdaq 100 gained 1.1%. The Dow Jones Industrial Average showed little change. American Airlines Group rallied following three analyst upgrades. Citigroup also responded to a bullish call. Tencent Holdings’ depositary receipts fell as the US added the company to its Chinese military blacklist.

The yield on 10-year Treasuries increased two basis points to 4.62%. The Dollar declined 0.6%. The Canadian dollar strengthened as Prime Minister Justin Trudeau resigned after more than nine years in office. Bitcoin surpassed $100,000. Oil reversed a five-session rally.

Traders are also anticipating Friday’s jobs report, which is expected to show employers tempered hiring to cap off a year of moderating but still-healthy labor markets. The data is unlikely to change Federal Reserve officials’ belief that they can slow the pace of rate cuts while the economy remains strong and inflation is gradually subsiding.

Fed Governor Lisa Cook said Monday that policymakers can be more cautious due to a strong labor market and persistent inflation pressures.