US STOCKS-Wall Street ends higher as Santa rally begins

Neuehealth

24/12/2024 18:39

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

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      Dow, Nasdaq take win streaks to four; S&P up for third
straight
    

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      Crypto-related stocks climb as bitcoin gains
    

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      Benchmarks higher on first day of Santa Claus rally
    

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      Indexes up: Dow 0.91%, S&P 500 1.1%, Nasdaq 1.35%
    

  
 (Adds closing prices)
    By David French
       Dec 24 (Reuters) - Wall Street's main indexes all closed
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 Nasdaq
Composite  .IXIC  scored four straight sessions of gains, with
the S&P 500  .SPX  taking its winning streak to three sessions,
marking the first day of the seasonal Santa Claus rally.
    The Dow had skidded for 10 straight sessions earlier this
month, its longest losing streak since 1974.
    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 the 7.4% jump in Tesla
 TSLA.O  shares.
    The automaker's best one-day gain in six weeks helped push
the consumer discretionary  .SPLRCD  index 2.6% higher. It was
the top gaining sector in the S&P, with all 11 ending in
positive territory.
    Elsewhere, chip manufacturers were also buoyant. Broadcom
 AVGO.O  and Nvidia  NVDA.O  rose 3.2% and 0.4%, respectively,
while Arm Holdings  ARM.O  climbed 3.9%, recouping most of the
losses suffered the previous day from losing a court case.
    Growth names rose despite U.S. Treasury interest rates
remaining elevated - the benchmark 10-year note  US10YT=RR 
yielded around 4.61% on Tuesday, its highest level since May.
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.
    The S&P 500  .SPX  climbed 65.97 points, or 1.10%, to
6,040.04 points, while the Nasdaq Composite  .IXIC  advanced
266.24 points, or 1.35%, to 20,031.13. The Dow Jones Industrial
Average  .DJI  rose 390.08 points, or 0.91%, to 43,297.03.
    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
U.S. election, which sparked hopes of pro-business policies
under 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 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, with
Microstrategy  MSTR.O , Riot Platforms  RIOT.O , and MARA
Holdings  MARA.O  all climbing between 4.7% and 8.1%, as the
price of bitcoin advanced. 
    NeueHealth  NEUE.N  soared 75% 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.
    American Airlines'  AAL.O  shares edged up 0.6% after
trading lower for much of the session. The carrier briefly
grounded all its flights in the United States on Tuesday due to
an unspecified technical issue.
    

 (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))