Stocks Set to Extend Rally After Trump’s Greenland Pivot, U.S. PCE Inflation and GDP Data in Focus

Market Performance - Wall Street's three main equity benchmarks closed sharply higher, with chip stocks leading the gains; Intel surged over +11% and AMD climbed more than +7% [1] - Data storage companies also advanced, with Sandisk rising over +10% and Western Digital gaining more than +8% [1] - Moderna was the top percentage gainer on the S&P 500, jumping over +15% after announcing positive results for its skin cancer vaccine [1] - Kraft Heinz slid more than -5% after disclosing that its largest shareholder, Berkshire Hathaway, could sell nearly all of its shares [1] Economic Data and Corporate Earnings - Investors are awaiting significant U.S. economic data, including the Fed's preferred inflation gauge and the final estimate of third-quarter GDP [2][9] - The S&P 500 companies are expected to post an average +8.4% increase in quarterly earnings for Q4 compared to the previous year [7] - U.S. pending home sales slumped -9.3% m/m in December, while construction spending rose +0.5% m/m [6] AI and Technology Developments - AI-related stocks climbed in pre-market trading, with OpenAI's CEO seeking funding that could value the company at up to $830 billion [3] - Nvidia's CEO stated that the global AI buildout will require trillions of dollars in computing infrastructure investment [3] - Micron Technology advanced over +2% in pre-market trading after receiving an Outperform rating from William Blair [19] International Market Reactions - The Euro Stoxx 50 Index rose +1.25% as President Trump walked back tariff threats related to Greenland, boosting sentiment in European markets [12] - Japan's Nikkei 225 Index closed higher, snapping a five-day losing streak, with semiconductor stocks outperforming [15] - China's Shanghai Composite Index closed slightly higher, with aerospace and energy stocks leading gains [14]