US Market Overview

Investing.com — The S&P500 closed higher Monday, supported by a tech and Tesla-fueled rally ahead of significant earnings from chipmaker Nvidia (NASDAQ:NVDA) and comments from various Fed officials.

At 4.00 p.m. ET (2100 GMT), the Dow Jones Industrial Average was down 55 points, or 0.1%, while the S&P 500 index rose by 0.4%, and the NASDAQ Composite gained 0.6%.

The three main indices fell last week after hitting recent highs following Donald Trump’s election win, as Fed chief Jerome Powell stated the central bank was not “in a hurry” to cut interest rates further.

Tesla Surges on Self-Driving Hopes; Spirit Airlines Files for Bankruptcy

Tesla (NASDAQ:TSLA) shares soared over 5% after Bloomberg reported that the incoming Trump administration plans to establish a federal framework for fully self-driving vehicles, prioritizing it within the Department of Transportation.

Big tech shares also performed well, with Apple Inc (NASDAQ:AAPL) and Alphabet Inc Class A (NASDAQ:GOOGL) both closing up more than 1%.

Roku Inc (NASDAQ:ROKU) jumped by 7% after Baird upgraded its rating to outperform from neutral, citing optimism about the long-term potential after recent share pullbacks.

Spirit Airlines (NYSE:SAVE) made headlines after filing for bankruptcy protection due to years of losses, announcing a prearranged deal with bondholders to assist its exit anticipated in the first quarter of next year.

Nvidia Shares Decline Ahead of Earnings

NVIDIA Corporation (NASDAQ:NVDA) cut some losses but closed 1% lower after reports indicated that its new Blackwell AI chips were experiencing overheating issues. The news comes shortly before Nvidia's third-quarter earnings release on Wednesday.

Investors view these results as indicative of the tech stock appetite, the AI sector, and general equity sentiment after a market rally following the elections.

Nvidia’s chips, regarded as the gold standard in AI, have propelled its stock by around 200% this year, allowing it to surpass Apple (NASDAQ:AAPL) as the largest company by market capitalization.

Additional earnings reports expected this week include Walmart (NYSE:WMT) and Lowe’s (NYSE:LOW) Companies, providing insights into consumer spending strength.

So far, 93% of S&P 500 companies have reported earnings, with three-quarters posting positive EPS surprises and 61% reporting positive revenue surprises, as per FactSet data.

PMI Data in Focus

The U.S. economic calendar is quieter this week, with attention on manufacturing and service sector PMI data due on Friday.

Prior to the PMI data, the National Association of Homebuilders reported a rise in the housing market index for November to 46 from 43 in October.

This data may offer early signs on corporate reactions to Trump’s proposed trade tariffs, a point the markets will scrutinize closely in the future.

Additionally, investors can expect comments from several Federal Reserve officials, including Kansas Fed President Jeffrey Schmid and Cleveland Fed President Beth Hammack.