End of Day Market Recap: Christmas Day 2024 Brings Holiday Cheer to Wall Street
As the bells of Christmas Day 2024 ring out, Wall Street finds itself in a festive mood, with major indexes posting gains in a holiday-shortened trading session. This stock market recap highlights the current performance of key market indexes, upcoming events, and major stock news that shaped the day’s trading.
Major Market Indexes Shine Bright
The S&P 500, often considered the benchmark for the overall market, rose 1.1% to close at 6,040.04 points. This impressive gain puts the index up 26.3% for the year, showcasing the resilience of the U.S. economy and investor optimism as we head into 2025.
The Dow Jones Industrial Average (DJIA) wasn’t far behind, climbing 0.9% to finish at 43,297.03. The blue-chip index has now advanced 14.9% in 2024, reflecting steady growth among America’s industrial giants.
Meanwhile, the tech-heavy Nasdaq Composite outperformed its peers, surging 1.3% to reach 20,031.13. This robust performance has propelled the Nasdaq to a staggering 33.4% gain for the year, underscoring the continued dominance of technology stocks in the market.
Tech Titans Lead the Charge
The day’s rally was largely driven by gains in Big Tech stocks, with several notable companies making significant moves:
1. Apple (AAPL): The iPhone maker contributed to the market’s upward momentum, though specific figures were not provided.
2. Amazon (AMZN): The e-commerce giant saw its stock rise, helping to lift both the S&P 500 and Nasdaq.
3. Broadcom (AVGO): The chipmaker continued its upward trajectory, building on yesterday’s gains after receiving bullish analyst comments about its artificial intelligence potential.
4. Meta Platforms (META): The social media behemoth jumped more than 2%, further fueling the tech sector’s strong performance.
5. Nvidia (NVDA): The GPU manufacturer saw its stock climb 3.7%, reflecting ongoing enthusiasm for AI-related technologies.
Notable Stock Movements and Corporate News
While tech stocks led the charge, other sectors also saw significant activity:
1. American Airlines (AAL): Despite a brief nationwide grounding due to a technical issue, the airline’s stock managed to shake off early losses and end the day mostly higher.
2. Honda (HMC): The Japanese automaker’s stock surged more than 12% following the announcement of official merger talks with fellow Japanese automaker Nissan.
3. Xerox (XRX): Shares of the printing and digital document company also jumped more than 12% after announcing plans to acquire printer maker Lexmark in a deal valued at $1.5 billion.
Upcoming Market Events and Economic Indicators
As we look ahead, investors should keep an eye on these upcoming events that could impact market performance:
1. Weekly Unemployment Benefits Update: Thursday will bring the latest data on U.S. unemployment benefits, providing insight into the labor market’s health.
2. Consumer Confidence: Recent data showed a dip in consumer confidence, with the Conference Board’s index falling to 104.7 in December, its lowest level since September. This trend will be closely watched in the coming weeks.
3. Durable Goods Orders: November saw a 1.1% decline in durable goods orders, the largest month-over-month drop since June. Future reports will be scrutinized for signs of economic strength or weakness.
Looking Ahead: Santa Claus Rally and Year-End Prospects
As we enter the final trading days of 2024, many investors are hoping for a Santa Claus rally. Historically, the S&P 500 has gained an average of 1.3% between the last five trading days of the year and the first two in January, dating back to 1969.
However, some analysts, like Jay Hatfield of Infrastructure Capital Advisors, are cautioning against expectations of significant gains. Hatfield maintains a year-end S&P 500 target of 6,000, implying only a modest 0.4% increase from current levels.
As we bid farewell to 2024, the U.S. stock market has demonstrated remarkable resilience and growth. With the S&P 500 up 26.3%, the Dow Jones Industrial Average gaining 14.9%, and the Nasdaq Composite surging 33.4% year-to-date, investors have much to celebrate this holiday season. As always, market participants should remain vigilant and prepared for potential volatility in the coming year.
Why was the market up today? The answer lies in the continued strength of tech stocks, positive corporate news, and optimism surrounding the potential for a year-end rally. As we move into 2025, investors will be watching closely to see if this momentum can be maintained in the face of evolving economic conditions and global challenges.
