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Key Takeaways
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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.
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Broadcom's shares built on last week's momentum after Wedbush analysts tapped the stock as a top semiconductor pick.
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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.
Major U.S. equities indexes were mixed to launch the trading week ahead of Wednesday's key Federal Reserve interest-rate decision.
While traders widely expect the central bank to announce another reduction in borrowing costs, comments from Fed Chair Jerome Powell and a slew of other economic data will likely be in focus this week as investors aim to gauge the trajectory of the economy and future policy moves.
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. The Dow slipped 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. The chipmaker reported better-than-expected quarterly sales and profits last week, highlighting strong artificial intelligence (AI) sales. The momentum continued Monday as Bernstein analysts named Broadcom one of their top semiconductor picks alongside industry behemoth Nvidia (NVDA).
Tesla's (TSLA) stock popped 6.1% to an all-time high as Wedbush analysts discussed the potential upside of carmakers' AI and full self-driving (FSD) technology under the incoming presidential administration. Wedbush estimated that Tesla's full self-driving and AI opportunity alone could be worth $1 trillion and expressed confidence that the Trump White House will streamline approval processes for these initiatives.
Shares of Micron Technology (MU) jumped 5.6% as the data storage chipmaker prepares to release its quarterly results on Wednesday afternoon. Consensus estimates call for strong year-over-year sales and profit growth. Earlier in December, Micron received around $6 billion in grants under the federal CHIPS Act to produce semiconductors in the U.S.
Super Micro Computer (SMCI) shares plunged 8.3%, losing the most of any S&P 500 stock. The decline followed the announcement late last week that Supermicro would be among the three stocks removed from the Nasdaq 100 as part of the influential index's annual reconstitution. In addition, Bloomberg reported Friday that Supermicro had enlisted investment banking advisory firm Evercore (EVR) to help with a potential capital raise.