Wall Street Rises on AI Momentum as Holiday Week Commences; Key Economic Data and Earnings Ahead

Market Overview - The U.S. stock market began a holiday-shortened week with strong performance, driven by a resurgence in AI-related stocks, leading to a cautiously optimistic sentiment among investors [1][2] - All three major U.S. stock indexes closed higher, with the Dow Jones Industrial Average rising 0.4% to 48,134.89, the Nasdaq Composite increasing 1.3% to 23,307.62, and the S&P 500 climbing 0.8% to 6,834.50 [2] Sector Performance - The technology sector showed significant gains, with the Technology Select Sector SPDR (XLK) among the top performers, while the Energy Select Sector SPDR (XLE) decreased by 1.5% [3] - The CBOE Volatility Index (VIX) fell by 11.6% to 14.91, indicating reduced market apprehension [3] Economic Data and Indicators - Key economic data releases are anticipated, including the third-quarter GDP estimate and the December Consumer Confidence survey, which could influence Federal Reserve monetary policy [5] - The University of Michigan reported a December consumer sentiment index of 52.9, up from 51 in November, with short-term inflation expectations decreasing to 4.2% [6] Major Stock News - NVIDIA Corp. shares rose by 3.9% due to reports of potential sales of high-end AI chips to approved customers in China [7] - Oracle Corp. saw a 6.6% increase following news of TikTok's U.S. operations being sold to a joint venture that includes Oracle [8] - Micron Technology Inc. shares jumped 7% after strong fiscal first-quarter earnings and positive outlook for the second quarter [9] - Tesla shares reached a record high, closing up 1.7% at $489 after winning a court battle regarding CEO Elon Musk's pay package [9] - Ride-sharing companies Uber and Lyft experienced gains of 2.8% and 4.2%, respectively, after announcing plans for robotaxi services in London [10] Earnings Announcements - FedEx Corporation reported adjusted earnings of $4.82 per share, leading to a 0.6% rise in its stock [11] - HEICO Corp. shares surged 5.8% after exceeding earnings expectations, while Carnival Corp. shares climbed 9.8% after beating earnings estimates [11] - Conagra Brands Inc. shares fell 2.5% after reporting revenues that missed expectations [11] Commodities - Gold futures surpassed $4,400 an ounce, and silver prices also reached new highs, driven by expectations of Federal Reserve rate cuts and geopolitical tensions [13] Market Outlook - As the year ends, technology and AI remain key market drivers, with upcoming economic data and a shortened trading week likely influencing investor strategies [14]