US Stock Market Today: S&P 500 & NASDAQ Climb as Tech Leads and Economic Data Beats Expectations

The US stock market today pushed higher as cooling geopolitical tensions and a renewed rally in artificial intelligence-linked megacaps lifted risk appetite. The advance held after an in-line inflation update, while bond prices fell and Treasury yields moved higher. 

By 10:23 a.m. in New York, the S&P 500 rose 0.5%, the NASDAQ 100 gained 0.5%, and the Dow Jones Industrial Average added 0.7%. Small caps continued to lead, with the Russell 2000 up 1% as global equities also climbed, including a 1% rise in the Stoxx Europe 600 and a 0.6% gain in the MSCI World Index.

Technology shares drove much of the upside, with the Bloomberg Magnificent 7 Total Return Index up 1.2% and the Philadelphia Stock Exchange Semiconductor Index higher by 0.4%. Traders pointed to comments from NVIDIA Corp. 

In addition, the strength extended beyond the largest names, as the Russell 2000 outperformed the broader US benchmark for a 14th straight session, signaling that investors kept rotating into smaller companies alongside the megacap rebound.

US Stock Market Rises as AI Trade Turns to Leadership

US stocks extended gains after President Donald Trump retreated from tariff threats tied to the Greenland dispute, easing fears of a deeper US-Europe clash. Sentiment improved after NATO’s secretary general described a breakthrough that centered on Arctic security rather than sovereignty, which helped calm markets that had reacted to escalating rhetoric earlier in the week. 

Still, strategists cautioned that headline-driven trading can reverse quickly, even when fundamentals remain supportive. Bespoke Investment Group said the past few days showed why investing in front-page headlines tends to backfire, while market watchers noted that the rapid pivot in sentiment revived talk of a short-lived ‘TACO trade.’

JPMorgan Chase & Co. strategists said they saw little evidence of foreign investors pulling back from US equities or bonds despite the geopolitical flare-up. However, discussion on trading floors included the risk of symbolic actions from Europe, including potential asset sales, even if the flow data has not shown a broad shift. 

Trump added pressure by warning of “big retaliation” if European countries sell US assets, while asserting that the US has “all the cards.” Meanwhile, Greenland’s pension fund, SISA Pension, said its board and investment committee have debated whether to continue investing in US stocks as a symbolic stand, though no decision has been made.

Treasury Yields Rise on Strong US Growth and Steady Labor Data

Bond markets moved lower as fresh data reinforced the case for the Federal Reserve to keep rates on hold in January. The yield on 10-years Treasuries advanced two basis points to 4.26%, while the 2-year yield rose two basis points to 3.61% and the 30-year yield held near 4.87%. 

Economic releases underscored that resilience. The US economy expanded in the third quarter by slightly more than initially reported, supported by stronger exports and a smaller drag from inventories, and other updates put inflation-adjusted gross domestic product growth at a revised 4.4% annualized rate, the fastest in two years. 

Initial jobless claims steadied around 200,000 last week, and personal spending rose at a solid pace in November, highlighting a consumer that remains active even as markets adjust to higher-for-longer rate expectations. Lale Akoner at eToro said the mix of strong growth and elevated yields tends to favor equities over bonds, especially for sectors with earnings visibility and pricing power, while higher rates also reward select income strategies and diversification.

Corporate Highlights: Key Movers In the US Stock Market Today

Corporate news also shaped the US stock market, with several large companies in focus:

• Trump's credit card rate cap may curb spending and tighten credit, BofA CEO warns.

• Alibaba readies listing of chip unit as AI-accelerator investor demand stays strong.

• GE guides profit above forecasts as jet-engine demand tracks steady air-travel growth.

• Abbott outlook misses estimates; nutrition unit weakness drags quarterly sales results.

• Paramount Skydance extends tender for Warner Bros. Discovery shares, more time to weigh.

• Waymo to open Miami robotaxi rides to the public, first of about 12 city launches.

• Freeport says Indonesia copper mine restart advances after deadly mudslide shutdown.

• Target hit by Minneapolis immigration crackdown fallout; staff callouts follow detentions.

• PayPal to buy Cymbio to help merchants sell via AI chatbots; terms were not disclosed.

Markets now remain sensitive to any renewed Greenland headlines, even as investors refocus on AI-led earnings momentum and evidence that US growth continues to outperform expectations. If data stays firm and tariff rhetoric remains contained, the rebound in US equities could hold, though options positioning around volatility suggests traders still expect sharp swings as the policy and geopolitical backdrop evolves.

Also Read: US Stock Market Today: NASDAQ and Dollar Slide After Trump Warns Europe of New Tariffs Ahead of Davos