Holiday Cheer Returns to Wall Street
As the Christmas holiday approaches, US stocks are ending the year on a high note. The S&P 500 and Nasdaq Composite indexes both saw significant gains, with the tech-heavy Nasdaq leading the charge, up around 1%. The Dow Jones Industrial Average also edged up, albeit more modestly.
Tech Stocks Lead the Way
Nvidia, the AI chip giant, was a major driver of Monday’s rally, with its stock surging over 3.5%. This caps off an incredible year for the company, with its stock up a staggering 180% in 2024. However, as we look to 2025, challenges may lie ahead.
The Santa Claus Rally Begins
Historically, the stock market has seen gains during the last five trading sessions of December and the first two trading days of January. So far, markets are embracing the Christmas spirit, with all three major indexes trading firmly in the green.
Sector Spotlight
Most sectors saw gains, with Consumer Discretionary, Energy, and Tech leading the way. Health care was the biggest laggard, dragged down by drug manufacturer Viatris and insurance company Cigna.
Flight Disruption
American Airlines briefly grounded all flights nationwide due to a technical issue earlier in the morning. The FAA lifted the ground stop, and flights have since resumed. Shares initially fell over 5% in premarket trading but have largely recovered.
Economic Data and Earnings
Today’s economic data includes building permits, durable goods orders, and new home sales for November. There are no notable earnings releases scheduled.
Markets Close Early
Markets will close at 1 p.m. ET today and remain closed tomorrow for Christmas Day. As we head into the holiday break, investors will be keeping a close eye on interest rates and the path forward for the US economy.
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