FX168 Financial News Agency (North America) reported that on Tuesday (December 24), in the last half trading day before the Christmas holiday, the three major US indices closed strongly higher, benefiting from a broad surge in the Technology Sector. The market closed early at 1:00 PM Eastern Time, and there will be no trading on Wednesday due to Christmas.
The S&P 500 Index rose by 1.1%, closing at 6040.04 points; the Nasdaq Composite Index surged by 1.4%, closing at 20031.13 points; the Dow Jones Industrial Average rose by 0.9%, closing at 43297.03 points.
(Source: FX168)
(Source: FX168)
Technology stocks led the market.
The Technology Sector became the core driving force behind the market's rise.
Tesla's stock price rose by 7.35%, leading the S&P 500 constituents for the second consecutive trading day, becoming the stock with the largest increase among S&P 500 index components. This is mainly due to market confidence in its sales and profitability. Since the beginning of this month, Tesla's stock price has increased by 34%.
Tech giants such as Apple, Amazon, and Meta Platforms all rose by more than 1%.
Chip stocks performed particularly well, with Broadcom rising by 3.15%, continuing its strong performance since December. Its stock price has surged over 46% this month, making it one of the best-performing chip stocks of the year. Super Micro Computer also saw a significant increase of 5.96%.
NVIDIA rose by 0.39%, with an annual increase approaching 180%, solidifying its dominant position in the AI field, though analysts remain cautious about profit growth expectations for next year.
"Santa Claus Rally" phenomenon.
The increase on Tuesday marked the start of the traditional "Santa Claus Rally."
According to LPL Research, this rally typically occurs during the last five trading days of each year and the first two trading days of the new year, with an average increase of 1.3% for the S&P 500 index during this period.
So far this week, the S&P 500 index has increased by 1.8%, the Nasdaq index rose by 2.3%, and the Dow Jones increased by 1%.
In terms of monthly performance, the Nasdaq Index has increased by 4.2% so far in December, with Google's parent company Alphabet rising by 16% and Tesla soaring by 34%.
However, the Blue Chip Dow Jones Index has fallen by 3.6% this month, marking the worst monthly performance since April.
Before the holiday, the retail Consumer Sector received Bullish Signals.
Jefferies Analysts stated that toy sales during this holiday season have performed exceptionally well. As the holidays approach, retailers face tight inventory, and discounts have significantly decreased. Particularly, board games have shown remarkable sales both in physical stores and online.
Retail giants like Walmart and Target have increased their sales space for toys.
Leaders in the toy Industry, Mattel and Hasbro, have risen by 0.67% and 0.65% respectively. Although holiday sales are showing signs of recovery, inventory pressure and industry competition remain short-term challenges.
Market View
The S&P 500 Index has risen by 26% so far this year, setting a record with 57 historical highs, even though it is currently slightly below the peak at the beginning of the month.
Analysts generally believe that the US stock market will continue to perform strongly, particularly due to the boost from the Technology Sector. However, the market still faces inflationary pressures, uncertainty regarding interest rate policies, and the complexities of the Global trade environment.
The market shows optimistic sentiment, but concerns about the Fed's policy path remain strong.
The CME Group's FedWatch tool indicates that most investors expect the Fed to maintain interest rates at the January and March meetings, but the May meeting could be a key moment for potential interest rate hikes or policy adjustments.
Bond market
The Bonds market remains relatively stable, with the yield on the 10-year US Treasury bond slightly rising from 4.59% to 4.61%. In the Commodity market, the holiday atmosphere leads to overall light trading.
Other focus stocks
American Airlines rose by 0.58%. Despite a brief nationwide flight suspension due to technical issues, American Airlines' stock price ultimately only closed higher, indicating that investors remain optimistic about the long-term prospects of the Aviation Industry.
