Stocks Finish Higher on Strength in Chip Makers and Energy Producers

Market Performance - The S&P 500 Index closed up +0.64%, reaching a 1-week high, while the Dow Jones Industrial Average achieved a new all-time high with a +1.23% increase [1][2] - The Nasdaq 100 Index also saw a rise of +0.77% [1] Sector Performance - Optimism regarding AI spending positively impacted chipmakers and data storage companies [2] - Energy companies experienced a rally following President Trump's comments about US control over Venezuela's oil reserves [2] - Mining stocks surged due to increased demand for precious metals as safe-haven assets amid geopolitical risks in South America, with gold rising over 2% and silver soaring more than 7% [2] Economic Indicators - The 10-year T-note yield fell by -3 basis points to 4.16%, supporting stock prices [3] - The December ISM manufacturing index unexpectedly fell -0.3 to 47.9, indicating the steepest contraction in 14 months [3] Federal Reserve Commentary - Dovish comments from Philadelphia Fed President Anna Paulson supported equity and bond prices, suggesting inflation moderation and stable growth [4] - Conversely, Minneapolis Fed President Neel Kashkari's comments were slightly hawkish, indicating US interest rates may be "close to neutral" for the economy [4] European Market Influence - Strength in European stocks, with the Euro Stoxx 50 reaching a new record high, provided support to US equity markets [5] Upcoming Economic Data - Key economic indicators to be released include the December S&P manufacturing PMI, ADP employment change, ISM services index, JOLTS job openings, and nonfarm payrolls, among others, which are expected to show various trends in employment and productivity [6]