U.S. stocks rose on Tuesday, extending a rally in technology stocks as investors awaited crucial economic data.
In Tuesday trading, the Dow Jones Industrial Average was up nearly 100 points, or 0.2%, the S&P 500 Index was up nearly 23 points, or 0.4%, and the NASDAQ Composite was up 65 points, or 0.3%.
Wall Street indexes were buoyed on Monday by a broad-based rally in technology stocks, helping them recover some of the losses recorded in late December and early January.
Nvidia in the Spotlight
Nvidia (NVDA) shares climbed more than 2% on Tuesday, continuing momentum from a nearly 3% rally during the previous session, when the stock briefly reached an all-time high.
At CES 2025, the annual technology conference held in Las Vegas, CEO Jensen Huang highlighted Nvidia’s leadership in developing cutting-edge technology for artificial intelligence chips, powering applications from data centers to consumer PCs and laptops.
Nvidia gained nearly $2 trillion in market capitalization throughout 2024, solidifying its position as a dominant player in the fast-growing AI chip industry.
The company also serves as a bellwether for the broader technology sector due to its integral role in AI advancements.
Meanwhile, shares of Meta Platforms (META) dipped about 0.3% after the Facebook parent company announced it would discontinue its third-party fact-checking program in the U.S. in favor of launching a “Community Notes” program, similar to the one used by the social media platform X.
Microsoft (MSFT) shares edged up 0.4% after the software giant revealed plans to invest approximately $3 billion to expand its Azure cloud and artificial intelligence capabilities in India.
Trump’s Comments Temper Optimism
Outside of the technology sector, stock market gains were partially curbed by President-elect Donald Trump’s denial of media reports suggesting a less aggressive tariff regime than previously expected under his incoming administration.
Trump dismissed a Washington Post report claiming his administration would target only specific sectors with trade tariffs, contradicting the broad tariff measures promised during his campaign.
Uncertainty around Trump’s economic policies has weighed on Wall Street at times this year, as he is expected to implement a mix of expansionary and protectionist policies that could bolster domestic growth but disrupt global trade.
Labor Market Data in Focus
Tuesday’s economic highlight is the November Job Openings and Labor Turnover Survey (JOLTS), which will provide insights into the labor market and its implications for the strength of the U.S. economy.
Later in the week, the ADP Private Payrolls report is due on Wednesday, followed by the highly anticipated December Non-Farm Payrolls report on Friday.
The Federal Reserve’s next policy meeting is scheduled for the end of this month. At its December meeting, the central bank adopted a more cautious stance on interest rate cuts, reflecting ongoing concerns about inflation and economic resilience.
