Wall Street Rallies as Trump Tariff Report Fuels Optimism

Wall Street's key indexes rose as optimism surrounding AI boosted semiconductor stocks. A report hinted at a possible softer tariff stance from Trump's team, lifting automakers. Microsoft's AI investments powered tech gains, while the Fed announcement loomed amid inflation concerns.

Wall Street's main indexes soared on Monday, reaching one-week highs, partly due to a surge in optimism around artificial intelligence, which boosted semiconductor stocks. Additionally, a report suggesting that President-elect Donald Trump's administration might adopt a less aggressive tariff approach than previously expected provided further market uplift.

Automotive industry players such as Ford and General Motors saw their stocks rise following speculation about targeted tariffs that could affect sectors vital to national security. Despite Trump's later denial of such a strategy, investors are eagerly watching for clearer policy insights as his inauguration nears.

Meanwhile, the tech sector led gains within the S&P 500, with chipmakers benefiting from Microsoft's $80 billion investment in AI-enabled data centers. The market also reacted to Foxconn's better-than-anticipated quarterly revenue, driving significant gains in stocks like Nvidia and Micron Technology. Economic data and Federal Reserve insights are expected to be pivotal in shaping future market movements.

(With inputs from agencies.)