Stocks Rebound as Semiconductor and Data Storage Firms Surge

US Stock Market Update: Indices Edge Higher

On Monday, the S&P 500 Index rose by 0.16%, the Dow Jones Industrial Average gained 0.17%, and the Nasdaq 100 advanced 0.08%. Futures for March E-mini S&P and Nasdaq contracts also saw modest increases of 0.16% and 0.09%, respectively.

Market Highlights and Sector Performance

After a weak start, major stock indices rebounded to close in positive territory. The S&P 500 reached a new all-time high, while the Nasdaq 100 hit its highest level in over two months. The rally was fueled by strong performances from data storage and semiconductor companies. Mining stocks also surged as gold and silver prices reached record levels.

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Global Markets and Economic Developments

US equities benefited from positive momentum in overseas markets. European shares set new records, with the Euro Stoxx 50 reaching an all-time high. In Asia, the Shanghai Composite soared to its highest level in over a decade.

Early trading was pressured by criticism from the Trump administration directed at the Federal Reserve, raising concerns about the central bank’s independence. As a result, stocks, Treasuries, and the US dollar faced selling pressure, while gold and silver prices surged after Fed Chair Powell noted that a potential criminal indictment was linked to policy disagreements with the administration. The yield on the 10-year Treasury note increased by 2 basis points to 4.19%.

Financial stocks, particularly credit card issuers and banks, declined after President Trump warned that lenders must cap interest rates at 10% for a year or risk legal action, with a compliance deadline set for January 20.

On Sunday evening, Fed Chair Powell revealed that the Justice Department had issued grand jury subpoenas related to his June congressional testimony about renovations at the Fed’s headquarters. Powell stated, “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than the preferences of the president.”

Key Economic Events This Week

• Tuesday: December CPI is expected to remain at 2.7% year-over-year, with core CPI anticipated to tick up to 2.7%. October new home sales are projected to fall by 10.6% to 715,000 units.
• Wednesday: November PPI and core PPI are both forecast to rise 2.7% year-over-year. Retail sales for November are expected to increase by 0.5%, or 0.4% excluding autos. December existing home sales may climb by 2.2% to 4.22 million. The Supreme Court could rule on the legality of President Trump’s tariffs.
• Thursday: Initial jobless claims are expected to rise by 7,000 to 215,000. The January Empire State manufacturing index is projected to increase by 4.9 points to 1.0.
• Friday: December manufacturing output is expected to dip by 0.1%. The January NAHB housing market index is forecast to rise by 1 point to 40.

Corporate Earnings Outlook

The fourth-quarter earnings season begins this week, with major banks reporting on Tuesday. Bloomberg Intelligence estimates S&P 500 earnings will grow by 8.4% in Q4. Excluding the largest tech companies, earnings are expected to rise by 4.6%.

Markets currently see a 5% probability of a 25 basis point rate cut at the FOMC’s next meeting on January 27-28.

International Markets Recap

• Euro Stoxx 50 closed at a record high, up 0.31%.
• Shanghai Composite reached a 10.5-year peak, gaining 1.09%.
• Japan’s Nikkei 225 was closed for a holiday.

Interest Rate Developments

March 10-year Treasury note futures ended Monday down by 2.5 ticks, with the yield rising to 4.185%. Yields climbed to a one-month high of 4.205% amid concerns about the Fed’s independence following Justice Department subpoenas. Powell attributed the threat of criminal charges to the Fed’s refusal to lower rates as requested by President Trump. Inflation expectations also pressured Treasuries, with the 10-year breakeven inflation rate reaching a 1.75-month high of 2.301%.

Despite these pressures, demand for Treasury auctions was strong. The $58 billion 3-year note auction had a bid-to-cover ratio of 2.65, above the recent average, while the $49 billion 10-year auction matched its average at 2.55.

In Europe, government bond yields fell. The 10-year German bund yield dropped by 2.2 basis points to 2.841%, and the 10-year UK gilt yield hit a 2.5-month low, ending at 4.373%.

The Eurozone’s January Sentix investor confidence index improved by 4.4 points to a six-month high of -1.8, surpassing expectations.

Swaps are pricing in just a 1% chance of a 25 basis point rate hike by the ECB at its February 5 meeting.

Notable Stock Movers

• Data Storage & Semiconductors: Western Digital (WDC) jumped over 6%, leading gains in the S&P 500 and Nasdaq 100. Seagate Technology (STX) climbed more than 5%. Advanced Micro Devices (AMD), Broadcom (AVGO), KLA Corp (KLAC), and Applied Materials (AMAT) each rose over 2%, while Lam Research (LRCX) gained more than 1%.
• Mining: Hecla Mining (HL) surged over 8%, Coeur Mining (CDE) advanced more than 5%, Freeport-McMoRan (FCX) and Newmont Mining (NEM) gained over 3%, and Barrick Mining (B) was up more than 2% as gold and silver prices hit new highs.
• Financials: Credit card and bank stocks fell after President Trump’s comments on interest rate caps. Synchrony Financial (SYF) dropped over 8%, Capital One (COF) fell more than 6%, and American Express (AXP) slid over 4%. Citigroup (C) lost more than 3%, Visa (V) over 2%, and Mastercard (MA), JPMorgan Chase (JPM), and Wells Fargo (WFC) each declined more than 1%.
• Other Movers:
  • ANI Pharmaceuticals (ANIP) soared over 10% after projecting 2026 revenue above analyst expectations.
  • Dexcom (DXCM) rose more than 5% following strong preliminary Q3 revenue results.
  • Albemarle (ALB) climbed over 4% after an upgrade from Scotiabank.
  • Walmart (WMT) advanced 3% after being named to replace AstraZeneca in the Nasdaq 100 Index.
  • Akamai Technologies (AKAM) and Amphenol (APH) each gained over 3% following analyst upgrades.
  • Comcast (CMCSA) rose more than 2% after a buy rating from Bank of America.
  • Palantir Technologies (PLTR) increased over 1% after a Citigroup upgrade.
  • Alnylam Pharmaceuticals (ALNY) fell more than 6% after reporting lower-than-expected Q4 sales.
  • SLM Corp (SLM) and Insulet (PODD) both declined over 3% following analyst downgrades.
  • Henry Schein (HSIC) dropped over 2% after announcing a CEO transition.
  • UnitedHealth Group (UNH) slipped more than 1% after a Senate committee report on its Medicare Advantage practices.

Upcoming Earnings Reports (January 13, 2026)

• Bank of New York Mellon Corp (BK)
• Concentrix Corp (CNXC)
• Delta Air Lines Inc (DAL)
• JPMorgan Chase & Co (JPM)