Megacap tech roars back, sending US stocks higher
The S&P 500 ended its longest losing streak since April with a jump of 1.3%. The Nasdaq 100 and Russell 2000 fared even better, up 1.7%.
Nine of 11 S&P 500 sector ETFs advanced, with marginal losses from consumer staples and materials as the lone holdouts. Consumer discretionary, tech, real estate, and industrials all rose more than 1%.
The Magnificent 7 cohort advanced 2.4%, with Tesla leading the way after yesterday’s big losses. Nvidia also put in another big gain to open the year as the VanEck Semiconductor ETF booked its largest one-day rally since September. Super Micro Computer was the best-performing S&P 500 constituent, up double digits.
Many automakers also moved higher after reporting strong EV sales, including General Motors, Ford, and Rivian, which had its biggest one-day gain since its IPO.
The US dollar, whose strength was a pain point for stocks in the first session of the year, fell against every G10 currency except the Canadian dollar on the day.
US Steel tumbled after President Biden blocked Japan’s Nippon Steel from acquiring the company.
