Stock market today: Equities attempt rebound ahead of earnings season

• The S&P 500 and Dow erased earlier losses to close higher.

• Investors are eyeing fourth-quarter earnings as a potential catalyst to spark a rebound in the stock market.

• Tech stocks were hit by new AI chip export rules, and Nvidia shares dropped due to a report of potential chip delays.

US stocks were mixed on Monday, with the Dow Jones Industrial Average climbing almost 400 points while the Nasdaq 100 declined by about half a percent. The S&P 500 closed slightly positive.

Stock market investors are attempting a rebound from a monthlong decline as they grapple with surging bond yields. US Treasury yields have been fast approaching the psychologically important 5% level and surged after last week’s strong December jobs report release.

The potential catalyst for a rally could be the fourth-quarter earnings season, which officially kicks off Wednesday with the major US banks reporting results before the close.

David Kostin, a strategist at Goldman Sachs, said he expects the solid corporate earnings growth from 2024 to spill over into 2025 and is forecasting overall profit growth of 11%.

Tech stocks were dinged on Monday after the Biden administration released a new set of AI chip export rules in an ongoing bid to limit China’s and Russia’s access to the technology.

Shares of Nvidia declined by about 2%. That company was also hit by a report from The Information that said there are some delays for its next-generation Blackwell chips due to technical glitches that cause the GPU to overheat.

Here’s where US indexes stood at the 4 p.m. closing bell on Monday:

Here’s what else happened today:

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil jumped 2.81% to $78.72 a barrel. Brent crude, the international benchmark, was higher by 1.42%, at $80.89 a barrel.

• Gold declined 1.34% to $2,678.60 an ounce.

• The 10-year Treasury yield rose 2 basis points to 4.790%.

• Bitcoin declined 0.93% to $93,630.

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