Wall Street's main indexes ended higher on Monday, with the Nasdaq Composite and Dow Jones Industrial Average achieving three straight sessions of gains, boosted by strong performances from leading technology stocks.

The S&P 500 rose 0.73% to 5,974.07, the Nasdaq Composite added 0.98% to 19,764.89, and the Dow Jones Industrial Average gained 0.16% to close at 42,906.95. These increases came during a holiday-thinned trading session, with trading volumes on US exchanges at 12.76 billion shares, below the 20-day average of 14.89 billion.

Tech heavyweights including Meta Platforms, Nvidia, and Tesla saw gains of 2.3% to 3.7%, while Apple, Amazon, and Alphabet also closed higher. The rally pushed eight of the 11 S&P sectors into positive territory, with communication services leading at a 1.4% rise.

Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management, noted that despite recent market fluctuations, tech and tech-enabled stocks remain favoured. "The trends are back in place, even after some recent volatility," he said.

Markets are also entering the "Santa Claus Rally" period, historically characterised by gains in the final five trading days of the year and the first two of the next. According to the Stock Trader's Almanac, this period yields an average S&P 500 increase of 1.3%.

In stock-specific moves, Qualcomm gained 3.5% following a jury ruling in its favour in a licensing dispute with Arm Holdings. Eli Lilly's shares rose 3.7% after the FDA approved its weight-loss drug for treating obstructive sleep apnea.

However, Walmart fell 2% after being accused of imposing excessive fees on delivery drivers, and Nordstrom's shares dipped 1.5% following news of a buyout agreement involving its founding family and Mexico's El Puerto de Liverpool.

Wall Street's rally has faced pressure this month, particularly after the US Federal Reserve signalled a slower pace of rate cuts in 2025. Nonetheless, analysts remain optimistic about a strong finish to the year.