Nvidia and tech stocks rally once again to keep Wall Street in positive territory as most sectors struggle to gain traction. On Monday, the S&P 500 edged up 0.4%, nearing its record high from last week. Despite the index’s rise, a majority of its components declined, underscoring how a few big tech names continue to carry the broader market.
The Dow Jones Industrial Average slipped 34 points, while the Nasdaq Composite climbed 0.9%, powered by surging demand for artificial intelligence and semiconductor stocks. Nvidia (NASDAQ:NVDA), the market’s leading force throughout 2025, once again led the charge. Another AI favorite, Palantir Technologies (NYSE:PLTR), also gained ahead of its earnings report, reinforcing optimism about the sector’s resilience.
Nvidia and Microsoft Power Wall Street’s Momentum
AI continues to dominate market sentiment, and Nvidia’s rally remains the strongest pillar of the U.S. stock market. Its dominance in the semiconductor industry and leadership in AI computing have made it the defining growth engine behind 2025’s market surge.
Adding to the bullish tone, Microsoft (NASDAQ:MSFT) announced a $9.7 billion cloud services deal with Australian-based IREN Ltd. (NASDAQ:IREN) to access Nvidia’s advanced chips. The five-year agreement includes a 20% prepayment and will help Microsoft scale its cloud and AI infrastructure. Following the news, IREN shares surged 22%, while Microsoft remained steady—further evidence that investors view AI infrastructure as the next big growth driver.
However, not all companies shared in the gains. Kimberly-Clark (NYSE:KMB) saw its stock drop 15% after revealing plans to acquire Kenvue (NYSE:KVUE), the maker of Tylenol, in a $48.7 billion cash-and-stock deal. The transaction, which will create a consumer health giant, caused Kenvue shares to jump 19% but drew mixed reactions from investors concerned about valuation and integration costs.
Mixed Signals Across Global Markets
While U.S. futures started the week higher, global markets painted a more nuanced picture. Germany’s DAX climbed 1.1%, London’s FTSE 100 added 0.1%, and France’s CAC 40 gained 0.2%, showing modest optimism ahead of key corporate earnings.
In Asia, South Korea’s Kospi surged 2.8% to a record close of 4,221.87, driven by strength in chipmakers and shipbuilders. SK Hynix (KRX:000660) shares jumped 11% after announcing plans to collaborate with Nvidia to expand South Korea’s artificial intelligence infrastructure. Samsung Electronics (KRX:005930) rose 3.4%, adding fuel to the regional tech rally.
Chinese equities also gained ground, with Hong Kong’s Hang Seng rising 1% and the Shanghai Composite Index up 0.6%. However, some gold retailers like Chow Tai Fook Jewellery Group (HKG:1929) tumbled 8.7% after Beijing reduced tax rebates on gold sales, cooling the recent buying frenzy that pushed gold to near-record highs.
Oil and Gold Markets React to Global Shifts
Energy markets were equally volatile. U.S. crude oil slipped $0.16 to $60.82 per barrel, while Brent crude declined $0.15 to $64.62. Prices initially rose after the United Arab Emirates opened a major oil summit, but optimism faded when OPEC+ confirmed plans to halt production increases for early 2026.
Meanwhile, gold prices rose 0.6% to $4,020.30 per ounce, as investors continued to view the metal as a hedge against economic and geopolitical uncertainties. Despite the rebound, gold remains below its record near $4,400 per ounce.
Earnings Season and AI Optimism Drive Markets
The coming week will bring a wave of earnings reports from major companies including Spotify (NYSE:SPOT), Uber (NYSE:UBER), McDonald’s (NYSE:MCD), and DoorDash (NASDAQ:DASH). With valuations running high, investors are looking for robust profit growth to justify recent gains.
As Nvidia and tech stocks rally, they remain the linchpin keeping Wall Street afloat amid broader market weakness. With AI adoption accelerating globally, tech giants and chipmakers continue to define the market’s direction—even as other sectors falter. For now, Wall Street’s momentum rests firmly on the shoulders of AI innovation and the few companies leading that charge.
Featured Image: Freepik
