Wall Street Hits New Highs Amid Tech Surge
NEW YORK (AP) — Wall Street achieved another milestone on Tuesday, buoyed by a significant rally in technology stocks.
This uptick resembles last year’s trend, where major tech companies frequently set new records.
While tech stocks were at the forefront of the gains, various sectors contributed positively to the overall market. Companies in health care, retail, and industrials also saw growth. Approximately 75% of the stocks in the S&P 500 index rose.
The S&P 500 gained 42.77 points, or 0.6%, reaching 6,944.82, marking its highest point in just three business days this year. The Dow Jones Industrial Average climbed 484.90 points, or 1%, to $49,462.08, achieving a new record for the second consecutive day. The Nasdaq Composite increased by 151.35 points, or 0.6%, to 23,547.17.
Interestingly, small and mid-sized company stocks outperformed their larger counterparts, with the Russell 2000 rising by 1.4%, nearing its December record.
Technology stocks saw remarkable movements, with Amazon—straddling both retail and tech—surging 3.4%. This powerhouse is among the world’s most valuable firms, and its strong stock performance helped counterbalance losses elsewhere, notably Apple’s 1.8% decline.
Micron Technology saw a significant increase of 10%, lending support to the market’s rise. Microsoft also enjoyed a 1.2% gain.
Nvidia, a key influencer in market direction, experienced fluctuations throughout the day, ultimately finishing 0.5% lower.
SanDisk was the standout performer, soaring 27.6%. Since spinning off from Western Digital last February, it has seen its stock price surge by over 800%, driven largely by the escalating demand for artificial intelligence and related data storage solutions. Western Digital itself rose 16.8%.
This week’s industry annual meeting in Las Vegas is highlighting technology firms focused on AI. Investors are particularly eager to hear updates on major AI investments.
In terms of oil, benchmark U.S. crude prices dropped 2% to $57.13 a barrel, reversing a sharp increase from the day before when markets reacted to the U.S. military’s recent actions in Venezuela. Brent crude, the international standard, fell 1.7% to $60.70 per barrel.
Meanwhile, in the bond market, yields increased. The yield on the 10-year U.S. Treasury climbed to 4.16% from 4.15% late Monday. Two-year bond yields rose to 3.46% from 3.45%.
Gold prices gained 1% and silver saw a remarkable 5.7% rise. These metals are typically viewed as safe investments during times of geopolitical instability.
Looking ahead, Wall Street is preparing for critical updates regarding the U.S. labor market along with reports about the services sector and consumer sentiment, which will help clarify how the economy wrapped up 2025 and where it might be headed in 2026.
This Wednesday, a report on job figures for November will be released. The previous October figures indicated almost no change in job numbers. The weekly unemployment data is expected on Thursday, followed by the broader employment report for December on Friday.
Additionally, the Institute for Supply Management will present its update on the services sector on Wednesday, and the University of Michigan will publish its latest consumer sentiment survey on Friday. Given that the services sector represents a significant portion of the U.S. economy, these insights will be closely analyzed, especially amid rising prices and economic uncertainty.
The Federal Reserve plans to review this data in preparation for its upcoming meeting in late January. In the latter half of 2025, the Fed reduced its benchmark interest rate three times to mitigate the economic consequences of a weakening job market. Lower interest rates can stimulate economic activity but also risk rekindling inflation.
Currently, Wall Street anticipates that the Fed will maintain interest rates during its January meeting.
