Nasdaq 100 and S&P500: Tech Stocks Drive US Indices Higher in Holiday Trading

S&P 500 grinds higher as tech and AI names try to reclaim leadership

The S&P 500 added about 0.5% to kick off a holiday-shortened week, with buyers leaning back into tech and AI after a few weeks of underperformance. The Dow was up roughly 0.3%, while the Nasdaq gained about 0.7% as growth and higher-beta names took the lead again.

The benchmark S&P 500 Index (SPX) gapped a key pivot at 6831.60 on the opening, turning it into support along with the 50-day moving average at 6773.74, which is our near-term trend indicator. Strong upside momentum has put 6903.46 and 6920.34 back on the radar.

Where was the strength under the surface?

Leadership was fairly classic “risk-on.” Tech, consumer discretionary, financials and energy all pushed higher, with energy up about 1.4% and discretionary up 0.8%. Health care, industrials and materials also green. The drag came from the defensives — utilities slipped about 0.5% and real estate ticked lower, hinting that investors were comfortable taking a bit more risk.

Is AI back in the driver’s seat?

AI-linked chips and software helped set the tone. Nvidia gained around 1% after reports it plans to start shipping its H200 chips into China by mid-February, even if final approvals are still a question mark. Micron tacked on roughly 2.5%, and Oracle added more than 1% as traders leaned back into the AI infrastructure story. Marvell caught a bid after a positive call from Citi ahead of CES, reinforcing the idea that the AI buildout theme still has legs, even if positioning had cooled off recently.

How did single names and crypto plays trade?

On the single-stock side, Warner Bros. Discovery jumped more than 4% on renewed deal chatter tied to Paramount and Skydance. Tesla, Axon, Palantir, Diamondback Energy, Synopsys, Monolithic Power and Airbnb all sat on the Nasdaq leader board.

On the flip side, Seagate, MercadoLibre, Zscaler, Fastenal and some staples and utilities lagged, with Kraft Heinz, Starbucks, Exelon and AEP all in the red.

Crypto stocks had a solid morning as bitcoin pushed back toward the $90,000 area, with Strategy, Marathon Digital and Robinhood all up around 2% give or take.

What’s weighing on the laggards?

Honeywell slipped after flagging a one-time fourth-quarter charge that will cut GAAP sales and operating income tied to a Flexjet settlement. That kind of headline is exactly what short-term holders use to take profits into year-end. More broadly, some of the recent winners in defensives and quality growth saw light profit-taking as money rotated back into cyclical and growth pockets.

Santa rally or year-end churn from here?

Big picture, this still looks like an “end of year churn,” to borrow Justin Bergner’s phrase. Investors are debating whether AI can keep leading into year-end while valuations stay rich and money quietly rotates into cheaper parts of the market.

The S&P 500 is struggling with a key technical area, and traders are watching to see if holiday liquidity and an early close on Wednesday help or hurt follow-through.

Bottom line: buyers are stepping in on weakness, but they’re not chasing every bounce, and the next leg probably depends on whether AI enthusiasm can hold up once the calendar flips.

More Information in our Economic Calendar.