Market Recap: S&P 500 Adds 0.6% as Semiconductor Stocks Soar
Key Takeaways
- The S&P 500 added 0.6% on Monday, January 6, led by a surge in semiconductor stocks.
- Teradyne shares pushed higher after Northland Securities analysts highlighted upside potential for the company’s electronic testing equipment.
- Palantir Technologies, the S&P 500’s top-performing stock in 2024, sank as analysts from Morgan Stanley cited valuation concerns.
Market Analysis
The first full week of 2025 began with mixed results across major U.S. equities indexes. The S&P 500 added 0.6%, while the tech-heavy Nasdaq rose 1.2%. In contrast, the Dow lost steam in the afternoon to end Monday’s session with a minor downtick of less than 0.1%.
Foxconn Posts Record Revenue
Taiwan-based technology manufacturer Foxconn posted record revenue for the fourth quarter, citing strong demand for artificial intelligence (AI) servers. This report helped boost shares of companies across the semiconductor industry.
Nvidia and Micron Technology Surge
- Shares of AI chip behemoth Nvidia (NVDA), a key customer of Foxconn, added 3.4%.
- Shares of memory solutions specialist Micron Technology (MU), whose technology is incorporated in Nvidia’s next-generation Blackwell AI platforms, surged 10.5%, notching Monday’s strongest performance in the S&P 500.
Other Companies Benefit from AI Server Optimism
Shares of server maker Super Micro Computer (SMCI) soared 9.4% following positive commentary from Lynx Equity. Analysts expect today’s keynote remarks by Nvidia at the CES conference to include an update on the newest iteration of its Blackwell AI chips, which could serve as a catalyst for Supermicro.
Teradyne Shares Jump
Shares of electronic testing equipment manufacturer Teradyne (TER) jumped 7.2% after Northland Securities upgraded the stock to ‘outperform’ and boosted its price target. Analysts believe Teradyne is well positioned to gain market share in the sector as cloud computing companies use the firm’s testing platform.
Axon Enterprise Shares Fall
Shares of Axon Enterprise (AXON) fell the most of any S&P 500 stock on Monday, tumbling 5.1% to their lowest level since the manufacturer of the Taser and other law enforcement equipment posted stronger-than-expected quarterly sales and profits in early November.
Palantir Technologies Shares Sink
Shares of data analytics software maker Palantir Technologies (PLTR) also sank 5% as Morgan Stanley reinstated coverage on the stock with an ‘underweight’ rating. Although analysts recognized Palantir’s strong trajectory, they suggested the company’s success is more than priced into the current valuation.
Essex Property Trust Shares Drop
Shares of Essex Property Trust (ESS) dropped 4% as Mizuho analysts trimmed their price target on the real estate investment trust (REIT). With a concentration on multifamily apartment complexes on the West Coast, Essex faces headwinds related to shifting employment and rental dynamics in its core markets.
T-Mobile US Shares Lose
Shares of T-Mobile US (TMUS) lost 3.1% after Wells Fargo and RBC downgraded the wireless operator’s stock and lowered their price targets. Analysts pointed to concerns about T-Mobile’s valuation and a potential slowdown in growth during 2025, reflecting a decline in wholesale revenue.
In conclusion, the first full week of 2025 began with mixed results across major U.S. equities indexes. The S&P 500 added 0.6%, while semiconductor stocks led by Nvidia surged as AI server optimism boosted companies like Micron Technology and Super Micro Computer.
