Tech Stocks Drive Wall Street Rally as Nvidia Leads AI Surge

U.S. stock indexes surged Monday, recovering from a sluggish start to 2025, as tech stocks, particularly those tied to artificial intelligence (AI), led the charge. The S&P 500 rose 1.2%, snapping a five-day losing streak, while the Dow Jones Industrial Average gained 261 points, or 0.6%, and the Nasdaq composite climbed 1.8% by mid-morning trading.

Nvidia, a key player in the AI sector, saw its shares jump 4.7% ahead of a speech by CEO Jensen Huang at the Consumer Electronics Show (CES) in Las Vegas. The company, along with other AI-focused stocks, continues to climb despite concerns about overvaluation. Microsoft also contributed to the rally, rising 2.1% after announcing plans to invest $80 billion in AI-enabled datacenters this fiscal year. Microsoft President Brad Smith emphasized AI’s transformative potential, comparing it to the invention of electricity.

In other sectors, Uber shares gained 3.5% after the company announced it would accelerate its stock buyback program, purchasing $1.5 billion of its own shares. U.S. Steel rose 4.6% as it and Japan’s Nippon Steel challenged President Joe Biden‘s decision to block their merger, citing political motivations and due process violations.

The week ahead is packed with market-moving events, including updates on job openings, services sector health, and the Federal Reserve‘s latest policy meeting minutes. Investors are also eyeing Friday’s monthly jobs report for insights into the U.S. economy’s resilience amid high interest rates.

Despite concerns about inflation and geopolitical risks, business confidence has improved since the presidential election, with services sector activity hitting a nearly three-year high. Chris Williamson, chief business economist at S&P Global Market Intelligence, noted,