NEW YORK, Jan. 8 (Xinhua) -- U.S. stocks ended higher on Monday, as a fall in the U.S. Treasury yields helped lift large cap stocks.
The Dow Jones Industrial Average rose 216.90 points, or 0.58 percent, to 37,683.01. The S&P 500 added 66.30 points, or 1.41 percent, to 4,763.54. The Nasdaq Composite Index increased 319.70 points, or 2.20 percent, to 14,843.77.
Ten of the 11 primary S&P 500 sectors ended in green, with technology and consumer discretionary leading the gainers by adding 2.75 percent and 1.77 percent, respectively. Meanwhile, energy bucked the trend by dropping 1.16 percent.
Large-cap companies like Amazon and Alphabet saw approximately 2 percent increases as the U.S. Treasury yields declined in anticipation of upcoming inflation data and a new batch of government bonds this week. The 10-year U.S. Treasury yield notably dropped to a session low of 3.966 percent.
Apple also experienced a similar 2-percent rise following the announcement that its Vision Pro mixed-reality device will be available for sale in the United States starting Feb. 2.
Chipmakers, including Nvidia and Advanced Micro Devices, witnessed surges of over 5 percent each. The Philadelphia SE Semiconductor Index also rose more than 3 percent, recovering from a 5.8 percent decline last week, which was the largest weekly percentage drop since October 2022.
UBS Group's wealth-management strategists have raised their 2024 price target for the S&P 500, aligning with a growing sentiment on Wall Street that anticipates stocks reaching new highs by year-end.
"We now have higher conviction in our base case of an economic soft landing and see the Fed cutting rates four times this year, likely starting in May. We have raised our December S&P 500 target to 5,000, providing 6.4 percent upside from Friday's closing price of 4,697," said Mark Haefele, chief investment officer at UBS Global Wealth Management on Monday.
The Dow Jones Industrial Average was under pressure in the morning session, as Boeing shares tanked 8.03 percent following the joint decision by the company and U.S. regulators to authorize inspections of grounded airplanes. This move came after an incident in which a panel detached from an Alaska Airlines-operated 737 MAX 9 during a flight, resulting in an emergency landing of the aircraft over the weekend.
Atlanta Fed President Raphael Bostic said on Monday that the central bank's dual goals of lowering inflation and maintaining low unemployment are not in conflict. Traders now see a 69.5 percent chance for at least a 25-basis point rate cut in March, according to the CME Group's FedWatch Tool.
