Nasdaq 100 and S&P500: AI Rally Led by Micron Lifts US Stocks Today as Traders Reassess Forecasts

Wall Street Pushes Higher as AI Strength Lifts the Mid-Session Tone

U.S. stocks were firmly green halfway through Monday’s session, helped by a pickup in tech buying and a sense that last week’s reset opened the door for another push higher. At 16:47 GMT, the Dow added 0.47% to 48,360.38, the S&P 500 gained 0.57% to 6,873.18, and the Nasdaq climbed 0.55% to 23,436.14. Light holiday volumes kept things calm, but buyers still had control.

Technically, the Nasdaq Composite Index (IXIC) is in a strong position to challenge the pair of tops at 23698.93 and 24019.99 now that it has overcome the 50-day moving average at 23151.05.

Is the AI Trade Taking the Wheel Again?

It sure looked that way. Micron’s momentum carried over, adding another 2% after last week’s bullish forecast rekindled confidence across the chip space.

The Philadelphia Semiconductor Index was up 1.1%, and traders kept leaning into familiar AI leaders.

Nvidia gained 1.2% on chatter that it plans to ship its next-best AI chips to China before mid-February — a headline that suggested demand pipelines remain healthy. Synopsys and Monolithic Power Systems also showed solid interest, both up more than 2%, helped by steady inflows into names tied to AI infrastructure rather than just the headline chips.

Are Traders Rotating Beyond the Mega Caps?

A bit. While Nvidia and Tesla grabbed attention, second-tier AI beneficiaries saw meaningful participation. Microchip Technology added over 2% as buyers stepped in after a slow stretch. Atlassian, Intuitive Surgical, and Dexcom all posted gains north of 1.8%, signaling traders were willing to explore outside the usual megacap cluster.

Even PDD joined the climb, rising nearly 3% as investors continued hunting for AI-adjacent growth stories. Nothing felt speculative — just steady re-engagement with quality names tied to AI development or data-heavy business models.

How Broad Is the Market’s Bid Right Now?

Broader than expected for a holiday Monday. Industrials, financials, materials, and energy each notched 1%-plus gains, showing buyers weren’t hiding exclusively in tech. Communication services and utilities chipped in modestly as well. The only drag came from consumer staples, down slightly, largely due to rotation. With volatility sinking to its lowest point since September, sellers never really showed up.

What Corporate Headlines Added Fuel?

Warner Bros Discovery jumped 4% after Larry Ellison agreed to personally guarantee a massive financing component tied to the Paramount Skydance offer — a headline that sparked fast positioning in media. Paramount rallied 5.1% on the same news. Clearwater Analytics surged 8.4% after private-equity buyers agreed to take the company private for $8.4 billion.

What’s the Market Really Positioning For in This Short Week?

With the market closing early on Wednesday and shut on Thursday for Christmas, traders don’t have much runway. That’s why the focus is squarely on the data coming over the next two sessions — the preliminary Q3 GDP read, December consumer confidence, and weekly jobless claims. If those prints land in a comfortable range, buyers may be willing to stay long into the brief holiday break.

The Santa Claus window kicks off Wednesday, and while volumes should stay thin, the bias still leans constructive if the numbers cooperate. Bottom line: the market wants to keep the AI-fueled momentum intact, but this week’s data has to give traders a reason to hold risk through the holiday.

More Information in our Economic Calendar.