Technology stocks led a broad rally on Wall Street Tuesday during a holiday-shortened trading session ahead of Christmas. The S&P 500 rose 1.1% for its third-straight gain. The Dow Jones Industrial Average added 0.9%, and the tech-heavy Nasdaq composite climbed 1.3%.
Big Tech companies such as Apple, Amazon, and chip company Broadcom played a significant role in driving the market higher, with gains being widespread across various sectors. Advancers outnumbered decliners by more than 3-to-1 on the New York Stock Exchange.
Notable stock movements included Broadcom rising 3.2%, Apple gaining 1.1%, Amazon closing 1.8% higher, and Super Micro Computer climbing 6%. Tesla saw a substantial jump of 7.4%, marking the biggest gains among S&P 500 stocks.
American Airlines recovered from an early loss to end with a 0.6% gain after briefly grounding flights nationwide due to a technical issue. U.S. Steel rose 1.9% following an influential government panel's failure to reach consensus on the potential national security risks of a proposed sale to Nippon Steel of Japan.
NeueHealth surged 74.9% after agreeing to be taken private in a deal valued at approximately $1.3 billion. The S&P 500 closed up 65.97 points at 6,040.04, the Dow added 390.08 points to 43,297.03, and the Nasdaq rose 266.24 points to 20,031.13.
In the bond market, Treasury yields remained steady, with the 10-year Treasury yield little changed at 4.59%. European markets closed mostly higher, while markets in Asia also saw gains.
The U.S. market rally on Tuesday coincides with the historically positive season known as the 'Santa rally.' The last five trading days of each year, along with the first two in the new year, have historically seen an average gain of 1.3% since 1950. This trend often correlates with positive returns in January and the upcoming year.
Despite concerns over potential policy impacts, the stock market is poised to deliver strong returns for 2024. The S&P 500 is up 26.6% year-to-date and remains close to its all-time high set earlier this month, with 57 record highs achieved this year.
U.S. markets will be closed on Wednesday for Christmas, with upcoming economic reports to include a weekly update on unemployment benefits on Thursday.
