Holiday Cheer Arrives on Wall Street
The festive spirit spread to the financial markets on Christmas Eve, as the S&P 500 surged 1.1% in a shortened trading session. The tech sector led the charge, with Tesla shares skyrocketing 7.4% on forecasts of strong quarterly deliveries.
Tesla’s Long-Term Ambitions Take Center Stage
While analysts expect the electric vehicle maker to post record fourth-quarter deliveries, Barclays believes the real catalysts for Tesla’s recent momentum lie in its long-term opportunities in self-driving and artificial intelligence. This shift in focus has investors excited about the company’s future prospects.
Broadcom Extends December Rally
Shares of Broadcom continued their upward trend, gaining 3.2% on Christmas Eve. The chipmaker’s AI expectations have been a major driver of its recent success, with UBS analysts increasing their revenue estimates and boosting their price target on the stock.
Super Micro Computer Recovers from Recent Losses
After a string of losses, Super Micro Computer shares rebounded 6% on Tuesday. The server and data storage provider received an extension from the Nasdaq exchange to file its delayed annual report until February, providing a much-needed boost to its stock.
Starbucks Shares Perk Up Ahead of Strike Resolution
Starbucks shares ticked 2.8% higher as the union-backed baristas participating in a strike against the coffee chain are expected to return to work tomorrow. A Starbucks executive assured that around 97% to 99% of stores will remain open, minimizing the impact of the strike on operations nationwide.
Walgreens Boots Alliance and Celanese Lag Behind
The weakest performers in the S&P 500 on Christmas Eve were shares of Walgreens Boots Alliance, which slipped 1.2%. Despite earlier reports of a potential sale to private equity firm Sycamore Partners, the stock has been trending lower since. Celanese shares also fell 1.2%, following RBC’s decision to slash its price target on the industrial chemical supplier due to pressure on margins from high energy costs.
Major U.S. Equities Indexes End on a High Note
The Dow added 0.9%, while the Nasdaq surged 1.4%, as financial markets prepared for the Christmas break. Investors can take comfort in the holiday cheer brought by the tech sector’s strength, but will be keeping a close eye on the market’s performance in the new year.
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