US STOCKS-Wall Street closes up in short Christmas Eve session

Neuehealth

24/12/2024 18:00

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      Markets close at 1 p.m. ET in holiday-shortened session
    

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      Crypto-related stocks climb as bitcoin gains
    

  
 (Updates to close)
    By David French
       Dec 24 (Reuters) - Wall Street's main indexes all ended
higher on Tuesday, with gains in megacap and growth stocks
bolstering benchmarks in a truncated Christmas Eve session.
    Both the Dow Jones Industrial Average  .DJI  and the Nasdaq
Composite  .IXIC  scored four straight sessions of gains. For
the Dow, the run follows its 10-session skid earlier this month,
its longest losing streak since 1974.
        The benchmarks closed higher on the first day of a
historically strong period called the "Santa Claus rally." The
S&P 500 on average has gained 1.3% in the last five days of
December and first two days of January, according to data from
the Stock Trader's Almanac going back to 1969.
  
    With megacap stocks having outsized influence on markets,
their performance is often a key driver of indexes. When coupled
with reduced trading volumes and few other catalysts, as many
investors take time off for the holidays, this is even more
pronounced.
    All the so-called Magnificent Seven megacap technology
stocks climbed on Tuesday, led by Tesla  TSLA.O .
    The automaker's rise helped push consumer discretionary
 .SPLRCD  shares higher, making them the top gaining sector in
the S&P.
    Elsewhere, chip manufacturers were also buoyant. Broadcom
 AVGO.O  and Nvidia  NVDA.O  were up, while Arm Holdings  ARM.O 
climbed a day after losses from losing a court case.
    Growth names rose despite U.S. Treasury interest rates
remaining elevated - the benchmark 10-year note yielded around
4.61% on Tuesday. Traditionally, higher debt costs crimp growth
stocks.
        However, the long-term themes around technology
development, including advancements in artificial intelligence,
overshadow any near-term moves in Treasuries, said Charlie
Ripley, senior investment strategist for Allianz Investment
Management.
  
    "This reinforces that view that the sector is going to
remain strong, and should be well into the new year," he said.
    According to preliminary data, the S&P 500
 .SPX  gained 64.93 points, or 1.09%, to end at 6,039.00 points,
while the Nasdaq Composite  .IXIC  gained 264.31 points, or
1.34%, to 20,029.19. The Dow Jones Industrial Average
 .DJI  rose 366.75 points, or 0.85%, to 43,273.70.
        Stock markets shut at 1:00 p.m. ET on Tuesday and will
be closed for Christmas on Wednesday.
    After a stellar run to record highs following the November
election, which sparked hopes of pro-business policies under
U.S. President-elect Donald Trump, Wall Street's rally hit a
bump this month as investors grappled with the prospect of
higher interest rates in 2025.
    The U.S. Federal Reserve eased borrowing costs for the third
time this year last Wednesday, but signaled only two more
25-basis-point reductions next year, down from its September
projection of four cuts, as policymakers weigh the possibility
of Trump's policies stoking inflation.
        Allianz's Ripley said the themes which had driven the
market higher in the past two months remained intact, and
actions by the Fed had not killed the rally.
  
        "Heading into 2025, things are set up with good
positioning," he said, noting factors including economic
outlook, consumption in the U.S. and the labor market.
  
    Crypto-related stocks traded higher on Tuesday, including
Microstrategy  MSTR.O , Riot Platforms  RIOT.O , and MARA
Holdings  MARA.O , as the price of bitcoin advanced. 
    NeueHealth  NEUE.N  soared after the healthcare provider
said New Enterprise Associates, its largest shareholder, and a
group of existing investors will take the company private in a
$1.3 billion deal.
    

 (Reporting by Medha Singh and Purvi Agarwal in Bengaluru and
David French in New York; Editing by Pooja Desai, Aurora Ellis
and Richard Chang)
 ((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; X, formerly
Twitter: @medhasinghs))