01:41 PM EST, 01/03/2025 (MT Newswires) -- US equity indexes rose midday Friday as consumer discretionary and technology topped sector charts while a manufacturing gauge showed a surprise slowdown in the pace of contraction.

The S&P 500 climbed 1.2% to 5,938.7, with the Nasdaq Composite up 1.7% to 19,602.1 and the Dow Jones Industrial Average 0.8% higher at 42,713.9. All sectors rose intraday, with utilities among the top gainers.

Nvidia ( NVDA ) and Tesla (TSLA) led gainers, up 4.7% and 5.3%, respectively, among the mega-caps stocks with a market capitalization of more than $200 billion.

Nvidia ( NVDA ) will likely announce new gaming products at the upcoming CES tech show, Wedbush Securities said in a note. Nvidia's ( NVDA ) most "prominent" announcement at the event, scheduled to begin Jan. 7, will probably relate to its 50-series graphics processing units. Investors will seek updates on the path of its generative artificial intelligence sales.

Evercore ISI adjusted its price target for Tesla to $275 from $195.

Tesla reported a drop Thursday in global deliveries for 2024, marking its first annual decline. According to Truist Securities, only about a fifth of its price target is based on the electric vehicle manufacturer's sales, energy capture and storage, and supercharging businesses. The rest comprises the firm's artificial intelligence-linked projects.

In economic news, the Institute for Supply Management's US manufacturing index rose to 49.3 in December from 48.4 in November, compared with expectations for a 48.2 reading in a survey compiled by Bloomberg.

"US manufacturing activity contracted again in December, but at a slower rate compared to November," ISM Manufacturing Committee Chairman Timothy Fiore said. "Demand showed signs of improving, while output stabilized and inputs stayed accommodative."

Richmond Federal Reserve President Tom Barkin told the First Friday Economic Outlook Forum that he sees the US economic outlook tilted to the upside in 2025. While there is still uncertainty in the outlook for the incoming administration's economic policy, Barkin said that he expects "more upside than downside" for growth.

In company news, President Joe Biden blocked Japan's Nippon Steel's proposed acquisition of US Steel, citing national security concerns and supply chain risks. Shares of US Steel dropped 5.8% intraday.

US Treasury yields traded mixed intraday. The 10-year was up 1.2 basis points to 4.59% after trading slightly lower alongside most maturities earlier in the session.

The US Dollar index fell 0.3% to 109.03 intraday, retreating from a 52-week high on Thursday.

West Texas Intermediate crude oil futures jumped 1.3% to $74.11 a barrel.

Gold futures fell 0.5% to $2,655.71 an ounce, while their silver counterpart advanced 0.5% to $30.06 per ounce.