Stock Market Today: December 24, 2024 – Market Gains Amid Holiday Cheer
As we approach the end of 2024, the stock market continues to show resilience, with major indexes posting gains in today’s shortened Christmas Eve trading session. Investors are keeping a close eye on market trends, upcoming events, and significant stock movements as we head into the new year.
Market Indexes Performance
The major U.S. stock market indexes are showing positive momentum in today’s trading:
– S&P 500: Up 0.17% to 5,984.30
– Nasdaq Composite: Gained 0.38% to 19,840.36
– Dow Jones Industrial Average: Increased 0.16% to 42,906.95
These gains come as Wall Street enters a historically strong period known as the “Santa Claus rally.” According to data from the Stock Trader’s Almanac, the S&P 500 has averaged a 1.3% gain in the last five trading days of December and the first two days of January since 1969.
Why Is the Market Up Today?
Several factors are contributing to the market’s positive performance:
1. Holiday Optimism: The “Santa Claus rally” effect is in full swing, boosting investor sentiment.
2. Tech Sector Strength: Technology and semiconductor stocks continue to lead the market, with companies like Nvidia (NVDA) and Broadcom (AVGO) showing strong performance.
3. Economic Resilience: Despite some mixed economic data, the overall economy remains robust, supporting market gains.
Upcoming Market Events
As we look ahead to the final days of 2024 and the beginning of 2025, several key events could impact market performance:
1. Year-End Portfolio Rebalancing: Institutional investors may make last-minute adjustments to their portfolios, potentially causing some market volatility.
2. Federal Reserve Policy: Investors are closely watching for any signals about the Fed’s interest rate plans for 2025. Current expectations suggest two more 25-basis-point reductions in 2025, down from earlier projections of four cuts.
3. Q4 Earnings Season: As we enter the new year, attention will turn to fourth-quarter earnings reports, which could significantly influence market direction.
Major Stock News
Several notable stocks are making headlines today:
1. U.S. Steel (X): Shares fell 2.3% in premarket trading as Nippon Steel’s $15-billion bid for the company has been referred to U.S. President Joe Biden, who has long opposed the tie-up.
2. Meta Platforms (META): The tech giant saw its stock jump more than 2% yesterday, contributing to the overall market gains.
3. Broadcom (AVGO): Advanced more than 5% in the previous session, buoyed by positive analyst comments about its artificial intelligence potential.
4. Nvidia (NVDA): Rose 3.7% yesterday, continuing its strong performance in the semiconductor sector.
5. Honda (HMC): Finished the previous session more than 12% higher after announcing it has entered into official merger talks with fellow Japanese automaker Nissan.
6. Xerox (XRX): Also closed more than 12% higher after announcing plans to acquire printer maker Lexmark in a deal valued at $1.5 billion.
Market Outlook
As we close out 2024, the market appears poised for a strong finish. However, some analysts urge caution:
– Michael Wilson, equity strategist at Morgan Stanley, notes that “Expensive/unprofitable growth stocks and low-quality cyclicals appear to be the most vulnerable to potentially higher-for-longer interest rates and less liquidity.”
– The equal-weight S&P 500, a proxy for the average index stock, is down 5.8% in December, indicating some underlying market weakness despite the headline gains.
Investors should remain vigilant and consider potential headwinds as they position themselves for 2025. Factors such as interest rate decisions, geopolitical events, and corporate earnings will continue to play crucial roles in shaping market performance in the coming year.
As always, it’s essential to maintain a diversified portfolio and consult with financial advisors to make informed investment decisions based on individual goals and risk tolerance.
