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Carmakers up after report Trump aides seeking selective

tariffs

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Philadelphia SE Semiconductor index hits two-month high

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Citigroup ( C/PN ) gains on brokerage upgrade

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Indexes up: Dow 0.41%, S&P 500 1.02%, Nasdaq 1.53%

(Updates for market open)

By Sruthi Shankar and Johann M Cherian

Jan 6 (Reuters) -

Wall Street's main indexes rose on Monday to one-week highs

as optimism around AI boosted semiconductor stocks, and a report

suggested the incoming Trump administration could adopt a less

aggressive stance on tariffs than previously anticipated.

At 9:47 a.m. ET, the Dow Jones Industrial Average

rose 174.85 points, or 0.41%, to 42,906.98, the S&P 500

gained 60.89 points, or 1.02%, to 6,003.36 and the Nasdaq

Composite gained 300.71 points, or 1.53%, to 19,922.39.

Automakers rose, with Ford up 2.6% and General Motors ( GM )

gaining 2.8% after a report said President-elect Donald

Trump's incoming administration is currently focused on imposing

universal tariffs, but only on certain sectors deemed critical

to national or economic security. However, Trump later refuted

the report.

Automobile manufacturers are considered the most

vulnerable to tariffs imposed on trade partners of the U.S.,

given their vast supply chains.

In the lead-up to Trump's inauguration on Jan. 20,

investors are seeking insights into his policies, which are

broadly seen as beneficial for corporate America as well as the

U.S. economy.

The Russell 2000 index, tracking domestically

focused small-cap companies, rose 0.7%.

"The concept of tariffs can either be done with a broad

brush, which had been talked about a bit in the campaign trail,

or they can be applied more targeted to protect critical

industries in the United States. It appears the narrative of the

latter seems to be moving forward, and that's something the

market would celebrate," said Art Hogan, chief market strategist

at B. Riley Wealth.

Nine out of the 11 S&P 500 sectors advanced with tech

stocks leading gains, up 1.6%.

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 ) gained 3.5%, Advanced Micro Devices ( AMD )

added 2.8% and Micron Technology ( MU ) climbed 9.6%. The

Philadelphia SE Semiconductor index jumped 3.7% to hit a

two-month high.

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

losses in December and the first few sessions of the new year,

when concerns about high valuations, rising Treasury yields and

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

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 key monthly payrolls report.

While Trump's proposals could boost corporate profits

and energize the economy, they also run the risk of placing

upward pressure on inflation. Fed Governor Lisa Cook was the

latest among a number of policymakers to caution that inflation

risks remain in the new year.

Among others, Citigroup ( C/PN ) added 1.6% after a bullish

rating from Barclays, while planemaker Boeing ( BA ) rose 1.3%

after the brokerage upgraded the stock to "overweight".

Markets will be shut on Thursday, Jan. 9, on account of a

national day of mourning to mark the death of former President

Jimmy Carter.

Advancing issues outnumbered decliners by a 2.16-to-1

ratio on the NYSE and by a 2.17-to-1 ratio on the Nasdaq.

The S&P 500 posted seven new 52-week highs and two new

lows, while the Nasdaq Composite recorded 64 new highs and 11

new lows.