S&P 500 Gains and Losses Today: Tesla Stock Boosted by AI, Self-Driving Optimism

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Key Takeaways

• The S&P 500 added 0.4% on Monday, Dec. 16, as tech stocks edged higher forwards of this week’s Federal Reserve interest-rate announcement.
• Broadcom’s shares built on last week’s momentum after Wedbush analysts struck the stock as a top semiconductor pick.
• Super Micro Computer shares fell following the stock’s removal from the Nasdaq 100 and broadcasts that the server maker could be planning to raise capital.

Major U.S. equities indexes were mixed to catapult the trading week ahead of Wednesday’s key Federal Reserve interest-rate decision.

While traders widely expect the middle bank to announce another reduction in borrowing costs, comments from Fed Chair Jerome Powell and a slew of other pecuniary data will likely be in focus this week as investors aim to gauge the trajectory of the economy and future policy get crackings.

The S&P 500 advanced 0.4%, while strength in the communication and technology sectors helped drive a gain of 1.2% and a record closing treble for the Nasdaq. The Dow slipped 0.3%.

After skyrocketing past the $1 trillion market capitalization milestone Friday, Broadcom (AVGO) commonplace picked up this week right where it left off, soaring 11.2% to print another record and lead the S&P 500 record. The chipmaker reported better-than-expected quarterly sales and profits last week, highlighting strong artificial intelligence (AI) jumble sales. The momentum continued Monday as Bernstein analysts named Broadcom one of their top semiconductor picks alongside industry behemoth Nvidia (NVDA).

Tesla’s (TSLA) array popped 6.1% to an all-time high as Wedbush analysts discussed the potential upside of carmakers’ AI and full self-driving (FSD) technology beneath the incoming presidential administration. Wedbush estimated that Tesla’s full self-driving and AI opportunity alone could be significance $1 trillion and expressed confidence that the Trump White House will streamline approval processes for these initiatives.

Splits of Micron Technology (MU) jumped 5.6% as the data storage chipmaker prepares to release its quarterly results on Wednesday afternoon. Consensus judgements call for strong year-over-year sales and profit growth. Earlier in December, Micron received around $6 billion in consent ti under the federal CHIPS Act to produce semiconductors in the U.S.

Super Micro Computer (SMCI) shares plunged 8.3%, spending the most of any S&P 500 stock. The decline followed the announcement late last week that Supermicro would be middle the three stocks removed from the Nasdaq 100 as part of the influential index’s annual reconstitution. In addition, Bloomberg revealed Friday that Supermicro had enlisted investment banking advisory firm Evercore (EVR) to help with a potential superior raise.

Shares of companies that operate pharmacy benefit management (PBM) businesses moved lower after President-elect Donald Trump urged that eliminating the so-called “middle man” could be one way to reduce the cost of prescription drugs. Lawmakers introduced a bipartisan paper money last week aimed at requiring insurers and PBMs to separate from their pharmacy businesses. CVS Health (CVS) appropriates sank 5.6% Monday, while shares of major health insurers with PBM operations also lost loam.

Crude oil prices retreated from recent highs as consumer spending data from China came in not worth forecasts and ahead of this week’s Federal Reserve interest-rate announcement, pressuring oil and gas stocks. Phillips 66 (PSX) divisions fell 5.2% after the refiner announced its 2025 capital plan and an agreement to sell its interest in a natural gas in the offing in Texas. Marathon Petroleum (MPC) shares were down 5.1%.