04:54 PM EST, 01/06/2025 (MT Newswires) -- The S&P 500 and the Nasdaq Composite closed higher Monday amid a rally in certain chipmaker and technology stocks.

The tech-heavy Nasdaq rose 1.2% to 19,865, while the S&P 500 gained 0.6% to 5,975.4. The Dow Jones Industrial Average fell 0.1% to 42,706.6. Communication services led the gainers among sectors, up 2.1%, while real estate saw the biggest drop.

On Sunday, Taiwanese electronics manufacturer Hon Hai Precision, known as Foxconn, reported that its December revenue jumped 42% year over year.

Micron Technology ( MU ) shares advanced nearly 11% Monday, the best performer on the S&P 500 and the second-best on the Nasdaq. Super Micro Computer ( SMCI ) was the second-top gainer on the S&P 500, up 9.4%. MicroStrategy ( MSTR ) was the top performer on the Nasdaq, while ASML ( ASML ) and Arm (ARM) were also among the best performers on that index. Nvidia ( NVDA ) topped the Dow, up 3.4%.

In company news, United States Steel ( X ) and Japan's Nippon Steel jointly filed a lawsuit challenging President Joe Biden's decision to block their deal. US Steel shares surged 8.1%.

Walt Disney ( DIS ) agreed to merge its Hulu + Live TV business with FuboTV ( FUBO ) in a deal that will give the media and entertainment a 70% stake in its streaming peer and settle litigation related to the proposed Venu Sports venture. Disney ( DIS ) shares ticked 0.1% lower, while FuboTV ( FUBO ) soared 251%.

Axon Enterprise ( AXON ) and Palantir Technologies ( PLTR ) shares dropped 5.1% and 5%, respectively, the worst performers on the S&P 500 and the Nasdaq.

The US 10-year yield rose 2.7 basis points to 4.62%, while the two-year rate lost 1.1 basis points to 4.27%.

Federal Reserve Governor Lisa Cook urged monetary policymakers to proceed "more cautiously" with interest rate cuts, given the central bank's 100 basis points of policy easing since September.

"Price increases have cooled notably over the past two and a half years, but, despite this significant progress on disinflation, there is still further to go before reaching our inflation target of 2%," Cook said.

West Texas Intermediate crude oil dropped 0.8% to $73.40 a barrel.

In economic news, the US services sector expanded to a 33-month high last month as new orders grew at the fastest pace since March 2022, S&P Global ( SPGI ) said.

"The strong service sector (purchasing managers' index) reading for December sets the US economy up for a good start to 2025 but, with growth as strong as this, it's understandable that policymakers are taking a more cautious approach to lowering interest rates," S&P Global Market Intelligence Chief Business Economist Chris Williamson said.

US durable goods orders decreased more than expected in November amid declines in transportation equipment and electronics including computers, government data showed.

Gold fell 0.3% to $2,647.20 per troy ounce, while silver rose 1.4% to $30.49 per ounce.