Tech Stocks Surge, Boosting Nasdaq Amid Rate Cut Speculation

On Monday, U.S. stock markets experienced significant gains, driven by a rally in technology stocks and growing expectations of a Federal Reserve interest rate cut.

The Nasdaq Composite climbed 2.7%, bolstered by substantial increases in semiconductor companies such as Broadcom, Advanced Micro Devices, and Micron Technology. Additionally, Tesla and Alphabet, Google's parent company, each saw their shares rise by over 6%.

The S&P 500 advanced 1.5%, continuing its upward trajectory following President Trump's announcement of a "very good telephone call with President Xi" and plans to visit Beijing in April.

Investor sentiment was further buoyed by comments from Federal Reserve officials indicating support for lowering interest rates at the central bank's upcoming meeting. San Francisco Fed President Mary Daly expressed her backing for a rate cut, aligning with earlier remarks from Fed Governor Christopher Waller.

Market expectations for a December rate reduction increased, with the probability rising above 80% on Monday, up from 71% on Friday and 42% a week prior, according to interest-rate futures prices tracked by CME.

In international markets, European defense stocks declined after the White House reported progress in peace talks with Ukraine. European natural gas futures also fell.

Bitcoin traded at approximately $89,000, following its worst weekly loss since February.

In Asia, Alibaba shares rallied, contributing to gains in Hong Kong's Hang Seng Index. Japanese markets were closed for a holiday.