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 indices are both up, with the tech-heavy Nasdaq leading the charge with a 0.3% gain. The Dow Jones Industrial Average, meanwhile, is holding steady.
Tech Stocks Lead the Way
Monday’s market surge was fueled by tech giants like Nvidia, which saw its stock price soar over 3.5%. The AI chip maker has had a phenomenal year, with its stock up a staggering 180%. However, experts warn that 2025 may bring new challenges for the company.
Fed Watch: Interest Rates in Focus
As the Federal Reserve enters its winter break, investors are reassessing the path of interest rates next year. The CME FedWatch tool suggests that most bets are on two rate holds in January and March, followed by a toss-up in May. The Fed’s ability to achieve a soft landing while still grappling with inflation has left many wondering what’s in store for the US economy.
Economic Data and Earnings
Today’s economic data releases include building permits, durable goods orders, and new home sales for November. However, there are no notable earnings reports scheduled.
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Markets Close Early Today
Markets will close at 1 p.m. ET today and remain closed tomorrow for Christmas Day. As investors head into the holiday break, they can take comfort in the sizable gains made on Friday and Monday, which have put the indexes back on track towards their record highs.
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