Nasdaq jumps 1.13% nearing 24,700 points due to semiconductor rebound

Semiconductors and MicroStrategy Lead the Surge

The semiconductor sector led the session on Monday. MicroStrategy Inc. soared 5.62% to $147.52, driven by the announcement of a massive purchase of 22,337 bitcoins for $1.57 billion last week. The company, led by Michael Saylor, now holds over 761,000 BTC, solidifying its status as the largest institutional holder of cryptocurrency. Arm Holdings increased 5.14% to $121.70, while GlobalFoundries gained 4.56% to $43.77. Chip manufacturer Marvell Technology added 4.23% to $91.58, followed by Micron Technology, which advanced 3.68% to $441.80. Equipment supplier Lam Research climbed 3.39% to $219.40. Beyond semiconductors, food industry giant Mondelez International jumped 4.14% to $57.16, DoorDash gained 3.98% to $167.78, and Latin American e-commerce giant MercadoLibre advanced 3.73% to $1,732.33.

CrowdStrike declines despite strong results

Going against the trend of the session, CrowdStrike fell by 4.06% to $423.84. Despite this, the cybersecurity specialist reported fourth-quarter results exceeding expectations, with quarterly revenue of $1.31 billion and earnings per share of $1.12. The company also surpassed $5 billion in annual recurring revenue, marking a 24% increase year-over-year. The post-closing decline in the stock price reflects profit-taking after strong performance during regular trading hours. Among other declines of the day, PepsiCo dropped 1.35% to $157.72, Starbucks fell 1.34% to $97.82, and Axon Enterprise decreased 1.32% to $489.64. T-Mobile US and O'Reilly Automotive each lost 1.18%, closing at $214.82 and $90.46, respectively.

A Rebound Driven by Geopolitical Easing

This positive session occurs amid easing geopolitical tensions in the Middle East. The drop in oil prices, following the announcement of secure passage for ships in the Strait of Hormuz due to an American naval coalition and Indian negotiations, has provided relief to investors. The price of a barrel fell by 4%, reducing the threat of stagflation ahead of the Federal Reserve meeting scheduled for Wednesday. The VIX volatility index plunged over 13%, indicating that institutional investors are unwinding their hedge positions. Consequently, the Nasdaq concluded the session at 24,655.34 points, buoyed by renewed optimism in technology stocks and the prospect of regional tensions stabilizing.