*

Carmakers rise after report Trump aides seeking selective

tariffs

*

Citigroup ( C/PN ) gains on brokerage upgrade

*

Fed's Barr to resign early; banks rise

(Updates to market close)

By Sruthi Shankar, Johann M Cherian and Carolina Mandl

Jan 6 (Reuters) - The S&P 500 and the Nasdaq Composite

rose on Monday, boosted by a rally in semiconductor stocks and a

report that suggested the incoming Trump administration could

adopt a less aggressive tariff stance than expected.

According to preliminary data, the S&P 500

gained 32.96 points, or 0.56%, to end at 5,975.98 points,

while the Nasdaq Composite gained 243.30 points, or

1.24%, to 19,864.98. The Dow Jones Industrial Average

fell 22.40 points, or 0.05%, to 42,709.73.

Most of the 11 S&P 500 sectors ended lower, but

communication services and tech stocks

climbed.

"What we're seeing is more of what happened last year, which

is a rally concentrated on the largest stocks," said Michael

Green, portfolio manager at Simplify Asset Management, adding

that flows from 401(k) retirement plans are helping drive stocks

higher.

Chipmakers got a boost from Microsoft's ( MSFT ) plan to

invest $80 billion to develop artificial-intelligence-enabled

data centers, as well as Foxconn's forecast-beating

fourth-quarter revenue.

Nvidia ( NVDA ), Advanced Micro Devices ( AMD ) and Micron

Technology ( MU ) rose. The Philadelphia Semiconductor index

jumped.

Tech stocks rose despite benchmark 10-year Treasury yields

reaching the highest since May.

U.S. stocks had rebounded sharply on Friday after a string

of losses in December and the first few sessions of January,

when concerns about high valuations, rising Treasury yields and

thin liquidity saw traders pull back after a strong 2024 run.

Automakers Ford and General Motors ( GM ) gained after

a newspaper report said President-elect Donald Trump's incoming

administration is focused on imposing tariffs on every country,

but only certain sectors deemed critical to national or economic

security. Trump later refuted the report.

"He did come out and say that he's not going to water down

his tariff plan, but the seed has been planted that the Trump

administration's tariff policies won't be quite as shocking as

people originally feared," said Brian Jacobsen, chief economist

at Annex Wealth Management.

Automobile manufacturers are considered the most vulnerable

to tariffs imposed on U.S. trade partners, given their vast

supply chains.

Leading to Trump's Jan. 20 inauguration, investors are

seeking insights into his policies, which are broadly seen as

beneficial for corporate America as well as the U.S. economy.

Citigroup ( C/PN ) moved higher after a bullish rating from

Barclays. An index tracking banks rose. Fed Vice Chair

for Supervision Michael Barr, who has sought a range of strict

rules on the nation's biggest banks, said he will resign.

In a week packed with economic data and speeches from U.S.

Federal Reserve officials, investors will look for clues on the

pace of monetary policy easing this year. Later in the week, the

focus will be on a monthly payrolls report.

While Trump's proposals could boost corporate profits and

energize the economy, they also risk driving up inflation. Fed

Governor Lisa Cook was the latest among a number of policymakers

to caution that inflation risks remain in the new year.

Markets will be shut on Thursday for a national day of

mourning to mark the death of former President Jimmy Carter.