Justin Sullivan / Staff / Getty Images
The Key Takeaways
- The S&P 500 added 0.4% on Monday, Dec. 16, as tech stocks edged higher ahead of this week's Federal Reserve interest-rate announcement.
- Broadcom's shares built on last week's momentum after Wedbush analysts tapped the stock as a top semiconductor pick.
- Super Micro Computer shares fell following the stock's removal from the Nasdaq 100 and reports that the server maker could be planning to raise capital.
The major U.S. equity indexes opened the week mixed ahead of the Federal Reserve’s important interest rate decision on Wednesday.
The Fed’s Jerome Powell will make a series of comments this week, and investors are likely to be focused on them to determine the future direction of the country and the policy decisions that the Fed is going to take.
The S&P 500 advanced 0.4%, while strength in the communication and technology sectors helped drive a gain of 1.2% and a record closing high for the Nasdaq. Dow fell by 0.3%.
After skyrocketing past the $1 trillion market capitalization milestone Friday, Broadcom (AVGO) stock picked up this week right where it left off, soaring 11.2% to print another record and lead the S&P 500 higher. Last week, the chipmaker announced better-than expected quarterly profits and sales. This was largely due to strong sales of artificial intelligence (AI). Broadcom’s momentum was continued on Monday when Bernstein analysts selected Broadcom as their number one semiconductor choice alongside Nvidia.
Tesla (TSLA), a stock of the automaker, soared 6.1% in value to a new high after analysts at Wedbush discussed the possible upsides for carmakers AI and fully self-driving technology (FSD) under the incoming administration. Wedbush estimates that Tesla’s AI and self-driving opportunity could be worth up to $1 trillion. They also expressed confidence that Trump will simplify the approval processes.
Micron Technology’s (MU), a data storage chipmaker, is preparing to publish its quarterly results Wednesday afternoon. Consensus projections call for strong sales growth and profitability year-over-year. Micron had received grants of around $6 Billion under the federal CHIPS Act for the production of semiconductors here in the U.S.
Super Micro Computer (SMCI) shares plunged 8.3%, losing the most of any S&P 500 stock. Supermicro Computer’s (SMCI), a stock that was removed from the Nasdaq 100 last week, suffered a steep decline. Bloomberg also reported on Friday that Supermicro has enlisted the investment banking firm Evercore to assist with a possible capital raise.
After President-elect Trump said that getting rid of the “PBM” (pharmacy benefit management) system would be a good idea, shares in companies operating PBM businesses fell. “middle man” It could help reduce the cost. Last week, lawmakers introduced a bipartisan measure requiring PBMs and insurers to separate their pharmacy operations. CVS Health’s (CVS) stock dropped 5.6% in Monday trading, and shares of other major health insurance companies with PBMs also fell.
Oil and gas prices fell from their recent highs after China’s consumer spending figures came in lower than expected and before this week’s Federal Reserve announcement of interest rates. This impacted oil and natural gas stocks. Phillips 66 shares (PSX) fell by 5.2% as the refiner revealed its 2025 Capital Plan and announced an agreement to divest its interest in a Texas gas pipeline. Marathon Petroleum’s (MPC), shares fell 5.1%.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
