The financial landscape witnessed a significant shift on Monday as risk sentiment edged higher. After two consecutive losing sessions and the worst week for the U.S. stock market since early September, a glimmer of hope emerged. The fading pressures from the dollar and Treasury yields played a crucial role in this turnaround. All 11 sectors of the S&P 500 found themselves in positive territory, with consumer discretionary stocks taking the lead. Tesla Inc. TSLA's 7% surge was a major contributor, as it outperformed other stocks. This rally was fueled by reports suggesting that the incoming Donald Trump administration plans to prioritize a federal framework for fully autonomous vehicles. According to Bloomberg, the Department of Transportation is set to place this framework at the top of its agenda, which has instilled confidence in the market.

Tech-Heavy Nasdaq 100: Outperforming the Rest

The tech-heavy Nasdaq 100 demonstrated exceptional performance on Monday. It outperformed both the S&P 500 and the Dow Jones Industrial Average. This was accompanied by strong gains in commodities. Gold, crude oil, and natural gas prices all posted significant rebounds amid the escalating geopolitical tensions between the U.S. and Russia. The U.S. dollar, which had been on a recent rally, paused after marking seven consecutive weeks of gains through Friday. Treasury yields remained flat as the session lacked significant economic data or fresh comments from Federal Reserve officials to provide market direction.In the cryptocurrency market, Bitcoin (CRYPTO: BTC) continued to surge. It surpassed the $92,000 mark and was on track to set a potential record-high close. Ethereum ETH/USD also advanced, rising 3% on the day. This shows the continued strength and volatility in the cryptocurrency space.

Major Indices and Their Performance

The major indices showed varying degrees of growth on Monday. The Nasdaq 100 reached 20,547.68, with a 0.8% increase. The Russell 2000 stood at 2,315.20, up 0.5%. The S&P 500 reached 5,897.81, with a 0.5% gain. The Dow Jones closed at 43,504.83, with a 0.1% increase. These figures highlight the overall positive trend in the market.According to Benzinga Pro data, the SPDR S&P 500 ETF Trust SPY rose 0.4% to $587.87. The SPDR Dow Jones Industrial Average DIA flattened at $434.49. The tech-heavy Invesco QQQ Trust Series QQQ rose 0.7% to $499.91. The iShares Russell 2000 ETF IWM rose 0.5% to $229.72. Among the sector-specific funds, the Consumer Discretionary Select Sector SPDR Fund XLY outperformed, rising 1.2%. However, the Health Care Select Sector SPDR Fund XLV lagged, up only 0.1%.

Stock Movements and Company Updates

Redfin Corp. RDFN faced a setback as Goldman Sachs downgraded the stock from “Neutral” to “Sell,” resulting in a 3.7% decline. Super Micro Computer Inc. SMCI, on the other hand, rallied 18% after announcing plans to submit a compliance proposal to Nasdaq by Monday to avoid delisting. Affirm Holdings Inc. AFRM saw a significant increase of 9.3% on Monday after revealing an expanded partnership with online travel agency Priceline. Under this partnership, Affirm will serve as the pay-over-time provider for Priceline Partner Solutions. However, Uber Technologies Inc. UBER dropped more than 7% as concerns over potential regulations on fully autonomous vehicles raised questions about the company's business model. Palantir Technologies Inc. PLTR declined 5% due to profit-taking after an 11% rally on Friday, which had pushed the AI-defense company's year-to-date gains to nearly 290%.In conclusion, Monday's market performance was a mix of gains and setbacks. The resurgence in risk sentiment, along with various sector-specific movements and company updates, has added to the complexity and excitement of the financial world. Investors will be closely watching these trends in the coming days to assess the future direction of the market.