Stock Market Recap: S&P 500 and Nasdaq Edge Higher, Dow Slips on December 23, 2024
Market Performance: A Mixed Bag
The stock market closed with mixed results on Monday, December 23, 2024, in a holiday-shortened week. The S&P 500 and Nasdaq Composite edged higher, while the Dow Jones Industrial Average slightly dipped. Here’s a breakdown of the major index performances:
– S&P 500 (^GSPC): Up 0.55% to 5,963.39
– Nasdaq Composite (^IXIC): Gained 0.90% to 19,748.39
– Dow Jones Industrial Average (^DJI): Slipped 0.04% to 42,824.66
Why Was the Market Up Today?
The market’s positive tilt can be attributed to several factors:
1. Inflation Optimism: A benign reading on U.S. inflation last week restored hope for potential policy easing in 2024.
2. Tech Sector Strength: Semiconductor stocks led the gains, with notable performances from industry leaders.
3. Holiday Season Expectations: Investors are hopeful for a “Santa Claus rally” as the year comes to a close.
Sector Spotlight
Consumer Discretionary: This sector (XLY) showed strength in early trading, reflecting optimism about consumer spending during the holiday season.
Technology: Semiconductor stocks were the day’s standout performers:
– Nvidia (NVDA): Up over 3%, continuing its stellar year
– Advanced Micro Devices (AMD): Surged more than 5% after being named a top pick for 2025 by Rosenblatt Securities
– Broadcom (AVGO): Climbed 5% following a price target increase from UBS analysts
– Taiwan Semiconductor (TSM): Edged higher, contributing to the sector’s gains
Notable Stock Movements
– Tesla (TSLA): Gained nearly 3% on expectations of strong Q4 deliveries
– Eli Lilly (LLY): Shares advanced after FDA approval of its Zepbound drug for sleep apnea treatment
– Xerox Holdings (XRX): Jumped 7% on news of its $1.5 billion acquisition of Lexmark International
– Palantir (PLTR) and MicroStrategy (MSTR): Both companies made their debut as components of the Nasdaq 100 index
Economic Indicators and Upcoming Events
– Consumer Confidence: Surprisingly declined in December, marking the largest month-over-month drop since November 2020
– New Home Sales: Fell short of expectations in November
– Treasury Yields: The 10-year yield reached 4.58%, its highest level since May
Market Outlook and Upcoming Events
Investors are closely watching the Federal Reserve’s interest rate policy for 2024. Current expectations, based on the CME FedWatch tool, show:
– A 50-50 chance of a rate cut vs. hold for the Fed’s March meeting
– Continued debate over the pace and timing of potential rate cuts
Holiday Trading Schedule:
– Tuesday, December 24: Market closes at 1 p.m. ET
– Wednesday, December 25: Markets closed for Christmas
– Thursday, December 26: Regular trading resumes
Global Market Influences
– Asian Markets: Showed strength, with Japan’s Nikkei gaining 0.7% and South Korea’s KOSPI firming 0.9%
– Currency Markets: The U.S. dollar index held near two-year highs
– Commodities: Gold and oil futures experienced slight declines
Conclusion
As we head into the final days of 2024, the market’s performance reflects a mix of optimism and caution. While tech stocks, particularly in the semiconductor sector, continue to drive gains, investors remain watchful of economic indicators and the Federal Reserve’s future moves. The holiday-shortened week may bring reduced trading volumes but could still see significant movements as year-end positioning takes place.
Investors should stay tuned for any surprise announcements or economic data releases that could impact market sentiment in these final trading days of the year. As always, it’s advisable to maintain a diversified portfolio and consult with financial advisors for personalized investment strategies.
