Stock Market Today: Nasdaq Leads Gains as Tech Stocks Rally on Christmas Eve
Market Overview: December 24, 2024
On this Christmas Eve, Tuesday, December 24, 2024, the stock market is showing mixed performance as investors navigate a holiday-shortened trading week. The tech-heavy Nasdaq Composite is leading the charge, continuing its upward momentum from the previous day’s session.
Major Market Indexes Performance
As of the latest update:
– The Nasdaq Composite is up approximately 0.8%
– The S&P 500 has gained about 0.5%
– The Dow Jones Industrial Average is lagging, trading slightly lower by 0.1%
Why is the market up today? The primary driver appears to be the continued strength in technology and chip stocks, which are offsetting weaknesses in other sectors.
Key Stock Movements and Corporate News
Several major stocks are making significant moves today:
1. Broadcom (AVGO): Shares have climbed approximately 5% after UBS analysts raised their price target, citing strong artificial intelligence (AI) revenue growth.
2. Nvidia (NVDA): The chip giant’s stock is up nearly 3%, continuing its impressive run in the AI-driven market.
3. Tesla (TSLA): Shares have gained about 3% following Barclays analysts’ suggestion that the electric vehicle manufacturer could report better-than-expected deliveries for the fourth quarter.
4. Eli Lilly (LLY): The pharmaceutical company’s stock has advanced after the FDA approved its weight-loss drug Zepbound to treat sleep apnea.
5. Xerox Holdings (XRX): Shares jumped nearly 7% after announcing a $1.5 billion acquisition of rival Lexmark International.
6. ResMed (RMD): The sleep apnea machine maker’s stock has slumped following the FDA’s approval of Eli Lilly’s Zepbound for sleep apnea treatment.
7. Nordstrom (JWN): Shares fell after the retailer announced it’s being taken private by its founding family and a Mexican retail group.
Upcoming Market Events
Investors should keep an eye on these key events:
1. Holiday-Shortened Trading Week: The stock market will close early at 1 p.m. ET on Tuesday (today) and remain closed on Wednesday for Christmas Day. Regular trading resumes on Thursday morning.
2. Potential Santa Claus Rally: Historically, the last five trading days of the year and the first two of the new year often see positive market performance. Investors are hopeful this trend will continue.
3. Economic Data Releases: While the economic calendar is light this week, recent data has shown a surprising pullback in consumer confidence for December and lower-than-expected new home sales for November.
Market Trends and Analysis
Stock market news today highlights several key trends:
1. Tech Sector Strength: Technology and chip stocks continue to drive market gains, with AI-related companies leading the charge.
2. Market Breadth Concerns: Despite the S&P 500 and Nasdaq gains, market breadth remains a concern. Only about 190 S&P 500 stocks were set to close higher on Monday, indicating the rally is not broad-based.
3. Treasury Yields: The 10-year Treasury yield has ticked up to 4.58%, its highest level since May, following the Federal Reserve’s scaled-back forecast for future interest rate cuts.
4. Cryptocurrency: Bitcoin is trading around $93,000 after recently slipping below the $100,000 mark.
5. Currency and Commodities: The dollar is trading at its highest level since 2022, while gold and oil futures have fallen.
Looking Ahead: Market Outlook
As we approach the end of 2024, the market news today suggests a cautiously optimistic outlook. While tech stocks continue to perform well, broader market participation will be crucial for sustained gains. Investors will be closely watching for signs of the traditional Santa Claus rally and any potential impacts from global economic events.
The pharmaceutical sector, particularly companies involved in weight-loss treatments and sleep apnea solutions, appears to be emerging as a beacon of stability and growth as we head into 2025.
As always, investors are advised to stay informed about stock market today developments and consider their individual financial goals and risk tolerance when making investment decisions.
