U.S. Indices Climb Amid Tech Rally

Dow, Nasdaq and S&P were fueled by Apple, Meta, MSFT pre-earnings. Caution before Fed, Trump-Canada tariff threats and DHS shutdown risks offset durable goods surge.

The Dow advanced 313.69 points (0.6%) to 49,412.40, the Nasdaq rose 100.11 points (0.4%) to 23,601.36 and the S&P 500 climbed 34.62 points (0.5%) to 6,950.23.

Wall Street rose on strong gains in Apple, Meta Platforms and Microsoft which advanced 3%, 2.1% and 0.9% ahead of their quarterly results while traders stayed cautious before Wednesdays Federal Reserve decision, widely expected to leave rates unchanged but closely watched for guidance.

Markets also weighed geopolitical risks as President Donald Trump threatened 100% tariffs on Canadian goods over a possible CanadaChina trade deal that Prime Minister Mark Carney rejected, alongside U.S. shutdown fears tied to a dispute over Homeland Security funding after a deadly immigration incident in Minneapolis, even as November durable goods orders from the Commerce Department surged well above expectations.

 

Networking stocks turned in some of the market's best performances, with the NYSE Arca Networking Index jumping by 2%. Software stocks were notably strong, as reflected by the 1.1% gain posted by the Dow Jones U.S. Software Index. Steel stocks showed a significant move to the downside, dragging the NYSE Arca Steel index down by 2.2%. Airline stocks saw considerable weakness on the day, resulting in a 1.5% loss by the NYSE Arca Airline Index.

Asia-Pacific socks turned in a mixed performance. Japan's Nikkei 225 Index tumbled by 1.8% and China's Shanghai Composite Index edged down by 0.1%, while Hong Kong's Hang Seng Index crept up by 0.1%. The major European markets also ended the day narrowly mixed while the French CAC 40 Index dipped by 0.2%, the U.K.'s FTSE 100 Index and the German DAX Index both crept up by 0.1%.

In the bond market, treasuries saw further upside after ending last Friday's session slightly higher. As a result, the yield on the benchmark ten-year note which moves opposite of its price, fell 2.6 bps to 4.21%.

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