What's New
Wall Street rallied with a strong performance in a holiday-shortened trading session on Tuesday that was led by the technology sector.
Why It Matters
This seasonal rally, often referred to as the "Santa rally," has historically delivered average gains of 1.3 percent over the final five trading days of the year and the first two of the new year. Analysts say this period often sets a tone for January and the coming year.
Despite some December losses that have pared back the year's gains, the stock market is poised to end 2024 on a high note. The S&P 500 remains up 26 percent so far this year and remains within striking distance of its all-time high achieved earlier this month. If the momentum holds, it will mark a banner year for U.S. equities with a record 57 new highs set by the S&P 500 alone.
What To Know
The S&P 500 climbed 0.8 percent, while the Dow Jones Industrial Average added 273 points, or 0.6 percent. The Nasdaq composite, often seen as a bellwether for tech, rose 1 percent.
Semiconductor companies bolstered gains with Broadcom up 2.9 percent and Nvidia—one of the market's most influential players—gaining 0.8 percent. Super Micro Computer surged by 5.8 percent.
Tesla emerged as one of the session's biggest winners, jumping 5.1 percent, while Amazon saw a 1.6 percent uptick.
Other Sectors
Not all sectors shared in the cheer, however. American Airlines edged down 0.1 percent following a brief nationwide grounding of its flights due to a technical glitch.
Elsewhere, U.S. Steel rose 1.1 percent, reflecting investor confidence despite ongoing concerns about the potential sale of the company to Japan's Nippon Steel.
A standout performer was NeueHealth, which soared nearly 69 percent after the healthcare company announced plans to go private in a deal valued at approximately $1.3 billion.
On the bond market, Treasury yields inched higher with the yield on the 10-year note rising to 4.61 percent from 4.59 percent on Monday.
What People Are Saying
Michael Hartnett, chief investment strategist at BofA Global Research, previously noted that economic optimism, based on expectations for economic growth and other indicators, is now at its highest level since August 2021, another signal that sentiment might be overheated.
What Happens Next
Wall Street is now gearing up for a short break as markets close early Tuesday and remain shut Wednesday for Christmas. Investors, however, have their eyes on upcoming economic reports, including Thursday's update on unemployment benefits.
This article includes reporting from The Associated Press.
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