In Monday's trading session, U.S. stock indices rallied impressively, with the Dow Jones Industrial Average climbing more than 800 points, a gain of 1.66%, ending the day at 49,183.51. The NASDAQ Composite also showed solid performance, increasing by 0.80% to close at 23,420.85, while the S&P 500 added 0.81%, finishing at 6,913.76. These moves reflect a resilient market backdrop despite recent economic data indicating a contraction in manufacturing.
Sector Performance Highlights
Energy stocks were among the strongest performers, surging 2.9% as rising commodity prices provided tailwinds. In contrast, utilities sectors experienced a decline, dropping 2.2%, indicating a rotation away from traditionally defensive assets to more cyclical and commodity-sensitive stocks.
Manufacturing Sector Challenges Persist
The Institute for Supply Management (ISM) released its Manufacturing Purchasing Managers' Index (PMI) for December, marking the third consecutive month the index has fallen. The PMI registered a reading of 47.9, down from 48.2 in November and below the market consensus forecast of 48.3. This figure represents the lowest mark since October 2024 and signals ongoing contraction within the U.S. manufacturing sector, highlighting continued headwinds in industrial activity.
Notable Stock Movements
Several NASDAQ-listed companies attracted investor attention owing to significant corporate developments. Momentus Inc (NASDAQ:MNTS) experienced a substantial surge of 57%, closing at $8.98 per share, following the announcement of an advanced additive-manufactured fuel tank slated for flight testing on its Vigoride-7 orbital service vehicle. This technological innovation underscores the company’s forward-looking approach within the aerospace sector, contributing to its marked stock appreciation.
GH Research PLC (NASDAQ:GHRS) shares climbed 17% to $15.43 after the U.S. Food and Drug Administration (FDA) lifted a clinical hold on the company’s Investigational New Drug Application (IND) for its therapeutic candidate GH001. This regulatory milestone removes a significant obstacle, positioning GH Research for progress in its clinical development endeavors.
VerifyMe Inc (NASDAQ:VRME) saw its shares rise 66% to $1.12 following the announcement of a strategic agreement via a letter of intent to merge with Open World. This prospective transaction signals a consolidation move aimed at enhancing competitive positioning and operational scale within their industry segment.
Stocks Experiencing Downward Pressure
Conversely, Zenas Biopharma Inc (NASDAQ:ZBIO) suffered a steep share price decline of 57%, settling at $14.94, following the release of Phase 3 trial results for obexelimab in immunoglobulin G4-related disease, which may have failed to meet expectations. Similarly, Palisade Bio Inc (NASDAQ:PALI) and Palvella Therapeutics Inc (NASDAQ:PVLA) saw declines of 16% and 14% respectively, closing at $2.10 and $86.16, reflecting sector-specific challenges or potential investor reassessment of valuations.
Commodity Market Movements
The commodities space reflected positive momentum parallel to equity markets. Crude oil prices advanced 1.7% to reach $58.30 per barrel, while gold prices increased by 2.9% to $4,454.40 per ounce. Notably, silver appreciated 7.3% to $76.23, and copper rose 5.1% to $5.9815, signaling bullish sentiment for metals and energy amid ongoing global economic considerations.
International Market Performance
European stock markets registered gains, with the STOXX 600 index increasing 0.94%. Major national indices such as Spain's IBEX 35 rose 0.70%, the UK's FTSE 100 advanced by 0.54%, Germany's DAX climbed 1.34%, and France's CAC 40 added 0.20%. Meanwhile, Asia-Pacific markets closed broadly higher. Japan's Nikkei 225 experienced a near 3% surge, while China’s Shanghai Composite added 1.38%. Hong Kong's Hang Seng edged up slightly by 0.03%. However, India's BSE Sensex declined by 0.38%, illustrating some regional divergence in investor sentiment.
The collective data suggest that while challenges in manufacturing persist domestically, the broader market remains buoyant, reflecting influences from technological advancements, regulatory developments, and strong commodities performance. This nuanced environment underscores the importance of closely monitoring sector-specific trends and macroeconomic indicators moving forward.