NEW YORK — U.S. stocks opened the holiday-shortened week with a steady bid on Monday, as investors returned to the “AI trade” after last week’s wobble and looked ahead to a lighter, data-driven stretch into year-end. The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all pushed higher in morning trading, helped by gains in semiconductors and other mega-cap tech names — while commodities stole a share of the spotlight, with gold and silver surging to fresh record highs. [1]
The session’s tone was set by a familiar mix of late-December forces: thinner trading volume, a growing fixation on the odds of a “Santa Claus rally,” and a market still trying to balance powerful momentum stocks against valuation and policy uncertainty. Adding to the day’s headline flow were two stock-specific catalysts that moved quickly across trading desks: a court ruling that restored Tesla CEO Elon Musk’s 2018 pay package, and a Reuters report that Nvidia plans to begin shipping its H200 AI chips to China before mid-February, pending approvals. [2]
Dow Jones, S&P 500 and Nasdaq performance as holiday week begins
Major U.S. indexes rose modestly in early trading, keeping the market close to recent record levels. The S&P 500 hovered just below the all-time high it set earlier this month, while the Dow and Nasdaq also traded in positive territory as the week began. [3]
With Christmas approaching, U.S. markets are operating on an abbreviated schedule: stocks are set for an early close on Wednesday and the exchanges are closed Thursday. That calendar typically compresses liquidity — a factor that can mute moves on quiet days, but also amplify them when a single headline hits at the wrong moment. [4]
The AI trade regains momentum — and semiconductors lead again
After a bout of “AI bubble” anxiety weighed on tech earlier in December, Monday’s action signaled renewed risk appetite, with chips and AI-linked software names back near the front of the pack.
Micron’s upbeat outlook late last week helped re-ignite enthusiasm for the semiconductor complex, and the rebound carried into Monday with broad strength among chipmakers. In early trading, Reuters noted that the Philadelphia Semiconductor Index was higher and that the market’s “fear gauge,” the VIX, dropped to its lowest level since September — a snapshot of investor confidence heading into year-end. [5]
The bigger narrative is that AI remains the market’s central growth theme — but it’s no longer a one-way trade. Investors have become more sensitive to the questions that matter when themes mature: how quickly AI infrastructure spending turns into earnings, which companies are capturing pricing power, and whether policy shifts will change the global demand map.
Nvidia stock watch: H200 China shipment plan becomes the day’s key tech headline
Nvidia was again central to the day’s market conversation after Reuters reported that the company has told Chinese clients it aims to start shipping its second-most powerful AI chips — the H200 — to China before the Lunar New Year holiday in mid-February.
According to Reuters, the initial shipments could total 5,000 to 10,000 chip modules — roughly 40,000 to 80,000 H200 chips — drawn from existing stock, with additional production capacity planned for future orders. The timeline, however, hinges on government decisions: Beijing has not yet approved any H200 purchases, and Reuters emphasized that approvals remain a major uncertainty. [6]
The report follows a broader policy shift in Washington. Reuters said President Donald Trump indicated earlier this month that the U.S. would allow H200 sales to China with a 25% fee, marking a change from the prior ban on advanced AI chip exports. [7]
For markets, the significance is immediate: a clearer path to shipping high-end chips into China can affect Nvidia’s near-term revenue expectations, while also re-opening debate over export controls, tariffs, and the long-run competitive dynamics of the global AI race.
Tesla stock jumps after Delaware Supreme Court restores Musk’s 2018 pay package
Tesla shares also drew heavy attention after the Delaware Supreme Court reinstated Elon Musk’s 2018 compensation plan, reversing a lower court decision that had voided the award. Reuters reported that Tesla surged and reached an all-time high after the ruling. [8]
The case has been closely watched because it touches both corporate governance and the practical question investors often ask about Musk: how Tesla’s board intends to keep its CEO focused as he leads multiple high-profile companies. Beyond Tesla itself, the decision has become a broader marker for how the market prices “key person” risk — especially in mega-cap stocks where the CEO’s decisions can directly influence strategy, capital allocation, and investor sentiment.
AppLovin and Palantir stay in focus as momentum traders return
Beyond the mega-caps, several high-momentum software names remained on watch lists as the market tried to extend its rebound.
Investors Business Daily highlighted AppLovin and Palantir among tech stocks holding up into the holiday week, with both names featured as key movers/“near entry” setups in its live coverage of the session. IBD also noted the broader technical backdrop: the major indexes remained above key moving averages, signaling that last week’s dip did not break the market’s intermediate uptrend. [9]
For Google News and Discover readers: the practical takeaway isn’t a chart pattern — it’s that leadership is broadening beyond the largest AI chip names into software platforms and adjacent “AI beneficiaries,” which often matters when markets try to sustain late-cycle rallies.
Rocket Lab surges on major government satellite contract
Space and defense-linked stocks also had a standout moment. Rocket Lab shares jumped again after news of a major government satellite contract — a continuation of the momentum that began late last week.
The Space Development Agency said Rocket Lab received an award with a total potential value of $805 million to provide 18 missile-warning / tracking space vehicles as part of Tranche 3 of its Tracking Layer program. [10]
This kind of contract news tends to matter in two ways:
- It expands backlog visibility (a key metric for space/defense suppliers).
- It reinforces the market’s growing theme that “space” is no longer only about launch — it’s about satellites, sensors, and military-grade data networks.
Deals and special situations: Warner Bros. Discovery, Paramount, and Clearwater Analytics
While tech led the index tone, deal-related headlines helped drive several individual movers.
Reuters reported that Warner Bros. Discovery rose after Oracle co-founder Larry Ellison agreed to provide a $40.4 billion personal guarantee tied to equity financing supporting a bid involving Paramount/Skydance, while Paramount shares also climbed on the news. [11]
Meanwhile, Clearwater Analytics jumped after private equity firms led by Permira and Warburg Pincus agreed to acquire the company in a deal valued at about $8.4 billion, including debt, according to Reuters. [12]
In a market that’s already priced for growth, M&A and take-private deals can have outsized influence late in the year because they create clear, event-driven price anchors — and can spark “read-through” speculation in peer companies.
Gold and silver hit record highs — and oil jumps on Venezuela-linked tensions
If Monday had a second headline theme besides AI, it was commodities.
Gold surged above $4,400 per ounce and set new record highs, while silver pushed to a fresh all-time high near $69.44 per ounce, according to Reuters. The move was fueled by a combination of safe-haven demand and expectations that U.S. rate cuts could resume in 2026, with analysts citing lower-rate dynamics as supportive for non-yielding assets like bullion. [13]
Oil prices also climbed sharply. The Associated Press and Investopedia both pointed to a geopolitical catalyst: U.S. actions involving sanctioned Venezuelan oil tankers, including reports that the Coast Guard was pursuing another vessel in the Caribbean — developments that can tighten perceived supply risk and lift crude. [14]
This commodity surge mattered for equities in a straightforward way: when oil and metals jump, energy and materials can outperform even on days when tech is leading the index, helping broaden the rally across sectors. Reuters noted that materials and energy were among the leading gainers in the S&P 500 early Monday as commodity prices rose. [15]
Global markets backdrop: BoJ rate hike, weaker yen, mixed Europe
International markets fed into the day’s risk tone as well.
In Japan, the Nikkei rose, with semiconductor-linked names contributing to gains. The move came shortly after the Bank of Japan raised its policy rate to the highest level in 30 years — yet the yen weakened rather than strengthened, a dynamic that can support Japanese exporters but also raise volatility risks if authorities warn against extreme currency moves. [16]
In Europe, stocks were modestly lower in thin holiday trading, with Reuters describing a cautious tone after recent highs and warning that low liquidity could still produce late-year “curveballs.” [17]
What investors are watching next: GDP, consumer confidence, jobless claims — plus shutdown distortions
Even with the holiday calendar, markets still have several potential catalysts in the days ahead.
Reuters and the AP both flagged key U.S. releases expected this week, including a reading on third-quarter GDP, the Conference Board’s consumer confidence report, and weekly jobless claims. [18]
One complication: recent government shutdown-related disruptions have delayed or distorted some U.S. economic data, creating extra uncertainty around “signal vs. noise” in late-year macro prints. That matters because markets are already debating the Federal Reserve’s next steps after multiple rate cuts and as investors try to price the path for policy in 2026. [19]
The bottom line for Dec. 22, 2025
Monday’s market story was less about a single breakout and more about a familiar year-end blend: tech and AI optimism returning, headline-driven moves in mega-caps like Nvidia and Tesla, and a parallel surge in gold, silver, and oil that reshaped sector leadership.
With thin liquidity and several high-impact headlines already landing before Christmas, the next question for Wall Street is whether the market’s rebound can hold through the shortened week — and whether the late-December “Santa Claus rally” narrative becomes self-fulfilling as investors close out what has already been a strong year for U.S. equities. [20]
References
1. www.reuters.com, 2. www.reuters.com, 3. apnews.com, 4. www.reuters.com, 5. www.reuters.com, 6. www.reuters.com, 7. www.reuters.com, 8. www.reuters.com, 9. www.investors.com, 10. www.sda.mil, 11. www.reuters.com, 12. www.reuters.com, 13. www.reuters.com, 14. apnews.com, 15. www.reuters.com, 16. apnews.com, 17. www.reuters.com, 18. www.reuters.com, 19. www.reuters.com, 20. www.reuters.com
