The focus of the New York stock market is shifting back to tech stocks.
On Monday, the tech-heavy Nasdaq set a new record after three trading days, while the Dow Jones Industrial Average, composed of 30 major blue-chip stocks, continued its eight-day losing streak.
Broadcom, a custom AI semiconductor company, saw its shares skyrocket over 11%, while Tesla surged more than 6%, highlighting the strength in the tech sector.
Meanwhile, Nvidia, a leading AI stock, entered a correction phase after three consecutive days of decline since December 12.
Nasdaq Reaches New Heights
The Nasdaq set a new all-time high for the first time in three trading days since December 11.
The index climbed 247.17 points (1.24%) to close at 20,173.89.
The S&P 500, which includes tech and large-cap stocks, also rose 22.99 points (0.38%) to 6,074.08.
In contrast, the Dow slipped 110.58 points (0.25%) to 43,717.48, marking its eighth consecutive decline since December 5.
Tesla Soars as Nvidia Enters Correction
The performances of Nvidia and Tesla diverged sharply.
Tesla, led by Elon Musk, who played a pivotal role in Donald Trump’s election victory, surged over 6% amid reports that the planned removal of electric vehicle subsidies would likely proceed as scheduled.
Reports indicated that Trump’s transition team had proposed the removal of subsidies.
A day earlier, Wedbush Securities raised its price target for Tesla to $515.
Tesla’s stock ultimately soared $26.79 (6.14%) to $463.02, setting a new all-time high.
In contrast, Nvidia faced headwinds as the administration continued implementing measures to curb China’s AI advancements, pushing the stock to enter a correction phase.
Nvidia shares fell $2.25 (1.68%) to close at $132.00, marking its third consecutive decline.
The stock dropped 11.33% from its record high of $148.88 on November 19. A drop of more than 10% from the previous high typically signals the start of a correction phase.
Quantum Computing Stocks Take Off
Quantum computing-related stocks showed strong performance.
Alphabet, credited with removing a major obstacle to quantum computing, rebounded significantly after two days of weakness, jumping $6.78 (3.54%) to $198.16.
Quantum computing startup Quantum Computing Inc. skyrocketed $4.38 (65.25%) to $11.08, while IonQ surged $7.98 (23.59%) to $41.81.
Oil Prices Retreat
After fluctuating late last week, international oil prices declined.
Prices fell following weekend gains.
Concerns that China’s oil demand, the world’s largest importer, may not rebound as strongly as expected despite economic stimulus measures weighed on prices.
Brent crude, the global benchmark, fell $0.58 (0.78%) to $73.91 per barrel for February delivery.
West Texas Intermediate (WTI), the U.S. benchmark, also dropped $0.58 (0.81%) to close at $70.71 per barrel for January delivery.
