At 9:58 a.m. ET, the Dow Jones Industrial Average rose 31.10 points, or 0.07%, to 49,008.28, the S&P 500 gained 22.95 points, or 0.33%, to 6,925.00 and the Nasdaq Composite gained 109.20 points, or 0.47%, to 6,925.00. 23,505.02.At least seven major S&P sectors traded in the green, with healthcare stocks leading the way, up 1.7%. Drugmaker Moderna rose 7% after BofA Global Research raised its price target for the stock.
Technology stocks rose 0.7%, led by chipmakers. Bellwether Nvidia gained 1.8%. Memory chip stocks rose, with SanDisk rising 20% to a record high, while peers Western Digital and Micron Technology added 6% and 6.4%, respectively.
Lithium miner Albemarle rose 12.1% after Berenberg raised its price target from $75 to $135. The stock lifted the broader materials index by 1.4%.
Investors have brushed aside fears of broader geopolitical implications after US forces captured Venezuelan President Nicolas Maduro this weekend. They gambled that the move could pave the way for American companies to gain access to Venezuela’s oil reserves. Oil companies eased on Tuesday after robust gains in the previous session, with giants Exxon Mobil and Chevron down 1.2% and 2% respectively.
US President Donald Trump’s administration plans to meet oil company executives later this week to discuss boosting production in Venezuela.
“A lot of adjustments need to be made to get these downstream producers ready for this type of crude. That could – and probably will. How long… how much investment it will take and who is making those investments are still the big questions,” said Mark Malek, Chief Investment Officer at Siebert Financial.
A raft of labor market data will hit investors’ radar this week, including the crucial December nonfarm payrolls data on Friday, which could influence the Fed’s monetary policy.
The data set assignments took on renewed importance after Fed Chairman Jerome Powell urged caution against further cuts at the central bank’s December meeting until there was more clarity on the health of the labor market.
The release also marks the return of a standard data report unaffected by the government shutdown, in which crucial data collection was suspended.
Richmond Fed President Tom Barkin said future interest rate moves must be carefully guided by incoming data given the risks to the central bank’s jobs and inflation targets, while Governor Stephen Miran said in a Fox Business interview that the policy was restrictive and holding back the economy.
S&P Global’s final U.S. composite PMI fell to 52.7 in December from 53.0 in the previous month, while the services PMI fell to 52.5 from 52.9, still indicating expansion.
Vistra gained 4.8% after announcing a deal to buy Cogentrix Energy from Quantum Capital Group for about $4.7 billion.
Advancing issues outpaced declining issues by a 1.08-to-1 ratio on the NYSE, and by a 1.18-to-1 ratio on the Nasdaq.
The S&P 500 posted 33 new 52-week highs and four new lows, while the Nasdaq Composite posted 65 new highs and 17 new lows.
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