The S&P 500 climbed alongside the Nasdaq Composite on Monday for back-to-back wins, as Wall Street rebounded from a losing week and chipmakers surged.

The broad market index advanced 0.55% to end at 5,975.38, and the Nasdaq Composite added 1.24% to 19,864.98. The Dow Jones Industrial Average lagged, losing 25.57 points, or 0.06%, and closing at 42,706.56. Earlier in the session, the 30-stock average rose as much as 383 points.

Chip stocks were among the big winners of the session after Foxconn announced record fourth-quarter revenue. Nvidia jumped 3.4%, closing at a record after the stock posted three straight days of gains. Broadcom gained about 1.7%, while Micron Technology advanced 10.5%. The VanEck Semiconductor ETF (SMH) jumped more than 3%.

"The market is, I think, being pretty optimistic about tech right now, looking for earnings growth of 20% this year versus 12.8% for the market … but valuations do appear restrictive," CFRA Research chief investment strategist Sam Stovall said. "The group will probably not rise based on P/E multiples, but will have to rise based on organic earnings growth."

Stovall expects "heightened volatility" this year given expensive valuations, potential adjustments to interest rate forecasts and earnings projections, and a new presidential administration. The third year of a bull market also tends to be more challenging per historical data going back to World War II, he added.

Market sentiment on Monday was also boosted by a Washington Post report saying President-elect Donald Trump's tariff plan would be narrower than anticipated, covering only critical imports. Trump called for "universal" tariffs as high as 10%-20% during his campaign. Ford and General Motors shares gained less than 1% and more than 3%, respectively, on optimism that a more restrained tariff policy from Trump wouldn't spark a global trade war.

Investors began another shortened trading week with lingering concerns about the Federal Reserve's interest rate projections. The New York Stock Exchange will be closed Thursday to mourn the death of former President Jimmy Carter.

Elsewhere, the 10-year Treasury yield rose to top 4.6% ahead of important economic reports out later this week.

The December jobs report is due out Friday and will be one of the last key pieces of data before the Fed meeting near the end of this month. Investors are also watching the Job Openings and Labor Turnover Survey, or JOLTS, on Tuesday and December ADP Employment Survey on Wednesday.

S&P 500, Nasdaq Composite end Monday higher

Stocks ended the trading session mixed, giving up gains seen earlier during the day.

The S&P 500 gained 0.55% to close at 5,975.38. The Nasdaq Composite advanced 1.24% to end at 19,864.98. The Dow Jones Industrial Average lagged, losing 25.57 points, or 0.06%, to close at 42,706.56.

— Pia Singh

New ETFs with bitcoin exposure and options are closer to launch

Bitcoin is back over $100,000, and asset management firms are betting that there is demand for more complicated types of ETFs that combine crypto exposure and derivatives.

Calamos announced Monday that it will launch a fund that aims for 100% downside protection for bitcoin along with some upside participation. The upside cap will be determined based on the options market pricing when the fund launches.

Other ETF issuers are also working on bitcoin products that aim for targeted outcomes and income generation.

Matt Kaufman, head of ETFs at Calamos, said his firm's fund can win over investors and financial advisors who are still spooked by bitcoin's volatility.

"For folks looking to access that space, they want to do so in a risk-managed framework, or something that makes a little more sense for their portfolio," Kaufman said.

— Jesse Pound

American shares pop after TD Cowen upgrade, price target hike

American Airlines shares jumped more than 4% after TD Cowen set a new Wall Street-high for where it thinks the carrier's stock can go.

TD Cowen's Tom Fitzgerald increased his price target by $8 to $25, which is the highest among analysts polled by LSEG. Fitzgerald also upgraded shares of the Texas-based airline to buy from hold, citing easing headwinds and reasons for optimism in the new year.

American "has emerged from transitory 2024 challenges," Fitzgerald wrote to clients in a Monday note. "We view consensus estimates as too low given tailwinds and favorable comps through 2025."

CNBC Pro subscribers can click here for the full story.

— Alex Harring

Oil and gas exploration stocks head for 10th straight advance in longest rally in almost five years

The SPDR S&P Oil & Gas Exploration & Production ETF traded higher on Monday, rising as much as 2% intraday, putting the ETF on pace for its 10th straight gain for the first time since April 2020.

The 55-stock XOP is up nearly 10% over the past 10 sessions, its best 10-day period since mid-October 2023. It was recently just up about 0.1%.

The longest rally ever for XOP was an 11-day advance that ended in November 2010. The exchange traded fund now has roughly $2 billion in assets, according to FactSet data. Its five largest positions are Antero Resources, APA Corp., Diamondback Energy, Occidental Petroleum and Coterra Energy.

Although XOP remains below its April 2024 52-week high, the ETF is moving above its 50-day moving average for the first time since early December.

— Scott Schnipper, Nick Wells

Information technology is Monday's top S&P 500 sector

Information technology was the best-performing sector in the S&P 500, rallying 1.8% during afternoon trading.

The gains were helped by a rally in artificial intelligence and semiconductor names, with Micron Technology last surging 12%. Super Micro Computer gained more than 9%, while Nvidia, Applied Materials and Lam Research added at least 4% each.

Communication services stocks also outperformed, rising 1.7%. Materials and consumer discretionary edged up 0.9% and 0.5%, respectively.

Three sectors lagged during afternoon trading. Consumer staples and utilities were the worst performers, declining at least 0.5% each. Real estate lost 0.3%.

— Samantha Subin

FuboTV pops more than 200% after official Disney transaction announcement

Shares of FuboTV surged more than 200% after the company confirmed in a press release that it was entering a definitive agreement with Walt Disney for the latter to combine its Hulu + Live TV business with Fubo.

Disney will own around 70% of the new business, while Fubo's existing management team will continue to operate the new venture. However, Fubo will be governed by a board of directors with the majority appointed by Disney.

The press release added that the new company "is projected to be well-capitalized and cash-flow positive immediately after the closing of the Transaction." Under the new venture, Fubo has settled all its previous litigation with Disney and ESPN as related to Venu Sports.

— Lisa Kailai Han

Canada ETF climbs as Trudeau announces resignation

Investors appear to be responding positively to news that Canada Prime Minister Justin Trudeau is resigning from his role at the top of the ruling Liberal Party.

The iShares Canada ETF (EWC) was up 4% in midday trading Friday. That comes after a gain of 6% on Friday.

Trudeau said he would resign as prime minister once the party chooses its next leader. He also announced that the Canadian parliament will be prorogued, or suspended, until March 24.

— Jesse Pound

Stocks making the biggest midday moves: FuboTV, Paycor and more

These are the stocks moving the most in midday trading:

• FuboTV — The streaming provider soared 242% after confirming it struck a deal to combine its online live TV businesses with Walt Disney.
• Paycor — Shares of payroll services provider Paycor surged 24% after Bloomberg reported that the company is in advanced talks to be acquired by larger competitor Paychex.
• Plug Power — The developer of hydrogen fuel cell systems gained 19%. It had previously added 13% on Friday after the U.S. Department of the Treasury released final rules for billions in tax credits for companies involved in making hydrogen in an effort to grow the clean energy industry.

Read the full list of stocks moving here.

— Lisa Kailai Han

Bank stocks push higher after top regulator Barr says he'll step down

Banking stocks got a boost Monday following the announcement that top industry regulator Michael Barr will be stepping down on Feb. 28.

The Federal Reserve's vice chair for supervision said he was leaving office to avoid a potential confrontation with President-elect Donald Trump, amid reports that Trump will seek to remove Barr.

Following the announcement, the KBE Bank ETF jumped nearly 2%. Barr has been unpopular in the industry as the Fed seeks to push through a new set of capital regulations.

—Jeff Cox

Chewy shares rise following Mizuho's best idea designation

Chewy shares climbed nearly 4% after Mizuho crowned the pet ecommerce stock its top consumer internet play.

Additionally, Director David Bellinger lifted his rating to outperform from neutral. Bellinger also hiked his price target by $18 to $42, now suggesting shares can run up 16.8% over last week's closing level.

"Near-term concerns around higher ad spend are short-sighted in our view, particularly as pet-related spending rebounds and CHWY remains well within its historical [return-on-investment] guardrails," Bellinger wrote in a Sunday note. "At a much higher level, we're attracted to intermediate-to-longer term prospects."

Specifically, Bellinger said he liked the outlook for EBITDA margin expansion; the opportunity to grow the mobile app; and vet-focused initiatives that have healthy unit economics. To put it simply, Bellinger said the company is entering "beast mode" in 2025.

His call follows a strong year for the stock, with shares surging more than 41% in 2024. That snapped a three-year losing streak.

— Alex Harring

Nvidia on track for a record close

Nvidia popped more than 4% on Monday, boosted by a broader move higher in the semiconductor space following a strong quarterly report from Foxconn. The move put the AI darling on track for its first-ever close above $150 per share, surpassing a previous record close of $148.88 set in early November.

— Fred Imbert

Stocks open higher to kick off the week

The three major U.S. indexes opened in the green.

The Dow Jones Industrial Average opened higher by about 137 points, or 0.3%. The S&P 500 added 0.7%, while the Nasdaq Composite also gained 1.15%.

— Pia Singh

Berkshire buys Verisign for 12 sessions in a row

Warren Buffett's Berkshire Hathaway scooped up more shares of Verisign, bringing its buying spree to 12 straight sessions.

The conglomerate bought 20,044 more shares of Verisign for $4.1 million via transaction on Tuesday, Thursday and Friday, according to a regulatory filing Friday night. The markets were closed on Wednesday for New Year's Day.

Shares of Verisign were up 2.6% in premarket trading on Monday.

Given the still small size of the bet, these transactions could be made by Buffett's investing lieutenants Todd Combs and Ted Weschler. Berkshire first bought the tech stock in 2013 and hasn't adjusted the stake in years.

Verisign, headquartered in Reston, Virginia, provides dotcom domain registry service. The company had a rough 2024, however, as its pricing structure came under regulatory scrutiny. The stock is up just 0.5% last year, missing out on the tech boom that has been driving the bull market. So, Berkshire's increased bet could be a value play as the stock is now trading near its cheapest level in seven years.

— Yun Li

American Airlines, FuboTV among the stocks making moves before the bell

Some stocks are making big moves in the premarket:

• American Airlines – Shares gained more than 4% after TD Cowen upgraded the airline to a buy from a hold rating and lifted its price target to a Wall Street high. The new target implies roughly 47% upside from Friday's close.
• FuboTV – The streaming provider rose more than 60% after the company neared a deal to combine its online live TV businesses with Walt Disney, according to a Bloomberg report. The new venture, which will include Disney's Hulu + Live TV business, will be 30% owned by Fubo and 70% by Disney and form the second-largest digital pay-TV provider after YouTube TV, Bloomberg said, citing sources familiar with the matter.
• Boeing – The aircraft stock added about 2% before the opening bell after an upgrade to overweight at Barclays. Analyst David Strauss said a tough 2024 for Boeing stock could give way for a rebound in the new year on strong deliveries and production.

Read the full list here.

— Sean Conlon

Trump reportedly eyes narrower tariff plans, auto stocks jump

President-elect Donald Trump is reportedly planning to narrow his tariff plans to target only certain important sectors, instead of all imports, the Washington Post reported, citing people familiar with the matter.

Two weeks before he takes White House, Trump is discussing plans to pare back some of the sweeping, universal tariffs he vowed to implement on the campaign trail, the Post reported. Instead, he is aiming to impose duties on sectors that are viewed critical to national or economic security, the newspaper reported, adding that the discussions are not final.

Shares of automakers jumped in premarket in a relief rally. Ford and General Motors climbed more than 2% each, while Stellantis NV surged 7% in early trading.

— Yun Li

FuboTV soars more than 40% in premarket trading on new Disney deal

Shares of streaming provider FuboTV rallied roughly 42.5% in Monday's premarket trading hours after the company neared a deal to combine its online live TV businesses with Walt Disney, according to a Bloomberg report.

The new venture, which will include Disney's Hulu + Live TV business, will be 30% owned by Fubo and 70% by Disney, Bloomberg said, citing sources familiar with the matter. Going forward, Fubo will also drop its anti-competitive litigation against Disney, Fox and Warner Bros. over Venu Sports.

If talks don't fall apart, sources expect the new transaction to be announced as soon as this week. This combined business would form the second-largest provider of digital pay-TV after YouTube TV.

Shares of Disney were trading less than 0.5% higher on Monday morning.

— Lisa Kailai Han

Bernstein lifts Microsoft price target

Microsoft shares have even more room to run, according to Bernstein.

Analyst Mark Moerdler upped his price target on the tech giant by $5 to $516, which now implies shares can rally 21.9% over the next year. Moerdler also has a buy rating.

"Microsoft has become far less crowded over the last year due to investors' concerns about [capital expenditures] and the ability of MSFT to convert [capital expenditures] to revenue," Moerdler told clients in a Monday note. "Those concerns are about to abate."

Microsoft shares added around 1% before the bell on Monday. In 2024, Microsoft notched its 12th winning year of the last 13.

— Alex Harring

Chip stocks rise on Foxconn's record fourth quarter

Chip stocks rose broadly on Monday after Foxconn reported a record fourth-quarter revenue. Nvidia and Broadcom rose 2% each, while Micron Technology advanced 4.3%. Advanced Micro Devices climbed nearly 3%. The VanEck Semiconductor ETF (SMH) was up 2.5%.

Semiconductors are coming off a banner year, as demand for computing power due to artificial intelligence showed little sign of slowing.

— Fred Imbert

Henry Schein pops following BofA double upgrade

Henry Schein shares rose more than 2% in Monday's premarket following a rare double-upgrade from Bank of America.

Analyst Allen Lutz raised his rating to buy from underperform. Lutz also hiked his price target by $15 to $84, which now suggests 21.6% upside over where the stock finished Friday's session.

"We think HSIC stands out as a best-of-breed dental asset strategically positioned to compound EPS at healthy rates," Lutz told clients, noting that was something the company had done for a decade before the Covid pandemic.

Lutz called Henry Schein "strategically positioned" to win within the dental space over the longer term. He also noted that multiple headwinds the company faced are starting to mitigate.

Still, Lutz's call comes amid a rough period shares. The stock finished 2024 down more than 8%, marking its second losing year in a row.

— Alex Harring

Europe stocks open higher

European stock markets opened broadly higher Monday, with the Stoxx 600 index up 0.29% at 8:15 a.m. in London.

France's CAC 40 index jumped 0.77% as Germany's DAX gained 0.4%. The U.K.'s FTSE 100 bucked the trend to dip 0.1%.

— Jenni Reid

China stocks hit over 3-month low as most Asia markets decline

Asia-Pacific markets mostly fell on Monday as investors assessed business activity figures from several key economies in the region.

Stocks in mainland China hit their lowest level in just over three months, with the CSI 300 losing 0.16% on Monday and closing at 3,769. China's Caixin services purchasing managers' index from S&P Global rose to 52.2 in December — the service sector's fastest expansion since May 2024.

Japan's Nikkei 225 led losses among major markets, falling 1.47% to 39,307.05, while the Topix was down 1.02% to 2,756.38.

In contrast, the South Korean Kospi was up 1.91% and among the largest gainers in Asia. The small-cap Kosdaq gained 1.73%.

— Lim Hui Jie

Crypto under pressure after bitcoin and ether post best weeks since Dec. 6

Bitcoin and ether are coming off their best weeks since Dec. 6, after they turned in their first positive weeks in four on Friday. They each gained about 4% for the week. On Sunday night they were lower by less than 1% each, according to Coin Metrics.

Solana had its best week since November 22nd, notching a more than 4% weekly gain. It traded lower by 1.25% Sunday night.

— Tanaya Macheel, Gina Francolla

Stock futures open little changed

U.S. equity futures opened little changed Sunday evening.

Futures tied to the Dow Jones Industrial Average were unchanged. S&P 500 futures added 4 points, or 0.08%, and Nasdaq 100 futures inched higher by 0.09%.

— Tanaya Macheel