Stock Market Today: Santa Rally Begins Amid Holiday-Shortened Trading Week
On Wednesday, December 25, 2024, major U.S. stock markets are closed for Christmas Day. However, the stock market’s performance leading up to the holiday and expectations for the coming days paint an interesting picture for investors. Let’s dive into the current state of the market, upcoming events, and significant stock news.
Market Performance
The S&P 500, a key benchmark for the U.S. stock market, closed at 6,040.04 on Tuesday, December 24, gaining 65.97 points or 1.10%. This puts the index up an impressive 26.6% for the year, showcasing a robust performance in 2024 . The Dow Jones Industrial Average also saw gains, closing at 43,297.03, up 390.08 points or 0.91%. Meanwhile, the tech-heavy Nasdaq Composite climbed 1.35% to 20,031.13 .
These gains come as part of what’s historically known as the “Santa Claus rally.” This period, encompassing the last five trading days of December and the first two of January, has historically seen an average gain of 1.3% for the S&P 500 since 1969 .
Key Movers and Shakers
Several stocks stood out in Tuesday’s trading session:
1. Tesla (TSLA): The electric vehicle giant surged 7.36% to $462.28, leading gains among S&P 500 stocks .
2. Broadcom (AVGO): The semiconductor company rose 3.2% .
3. Apple (AAPL): The tech behemoth gained 1.1% .
4. Amazon (AMZN): The e-commerce and cloud computing leader closed 1.8% higher .
5. Super Micro Computer (SMCI): This tech company climbed 6% .
In the cryptocurrency space, Bitcoin (BTC-USD) was trading at $98,036.55, up 4.25%, while Ethereum (ETH-USD) rose 2.30% to $3,474.10 .
Upcoming Market Events
As we move into the final days of 2024, investors should keep an eye on several key events:
1. Weekly Unemployment Benefits Update: Thursday, December 26, will bring the weekly update on U.S. unemployment benefits, which could influence market sentiment .
2. Year-End Trading: The last few trading days of 2024 and the first two of 2025 will be closely watched as part of the potential Santa Claus rally .
3. Federal Reserve Policy: Investors are digesting the Federal Reserve’s recent signal of fewer interest rate cuts in 2025 than previously anticipated. This shift has led traders to expect rates to remain in the 4% to 4.25% range by the end of 2025, up from earlier projections .
Major Stock News
1. U.S. Steel (X): The proposed $15 billion sale of U.S. Steel to Japan’s Nippon Steel is under scrutiny. An influential government panel failed to reach a consensus on the potential national security risks of the deal .
2. American Airlines (AAL): The airline briefly grounded flights nationwide due to a technical issue but managed to close with a 0.6% gain .
3. NeueHealth: The healthcare company surged 74.9% after agreeing to be taken private in a deal valued at approximately $1.3 billion .
Market Outlook
As 2024 draws to a close, the U.S. stock market remains on track for strong annual returns. However, some analysts are cautioning about potential challenges ahead. Michael Wilson, equity strategist at Morgan Stanley, noted, “Expensive/unprofitable growth stocks and low-quality cyclicals appear to be the most vulnerable to potentially higher-for-longer interest rates and less liquidity” .
Investors will be watching closely to see if the market can maintain its momentum into the new year, especially given concerns about the health of the market under the surface and current high valuations.
As we enter 2025, market participants will be keenly focused on economic indicators, corporate earnings, and potential policy shifts that could impact stock performance. The interplay between these factors will likely shape the market’s trajectory in the coming months.
