Wall Street’s major indexes closed higher Tuesday, with megacap and growth stocks driving gains during a shortened Christmas Eve session. The Dow Jones Industrial Average (.DJI) and Nasdaq Composite (.IXIC) extended their winning streaks to four sessions, while the S&P 500 (.SPX) marked its third consecutive gain, kicking off the seasonal “Santa Claus rally.”
Tesla’s 7.4% surge led the Magnificent Seven megacap stocks higher, boosting the consumer discretionary index (.SPLRCD) by 2.6%, the top-performing S&P sector. Chipmakers Broadcom and Nvidia added 3.2% and 0.4%, respectively, while Arm Holdings rose 3.9%.
Despite elevated U.S. Treasury yields, growth stocks climbed, driven by optimism around long-term tech trends like AI. Allianz strategist Charlie Ripley noted that technology’s strength is expected to persist into 2025.
The Dow rose 390.08 points (0.91%) to 43,297.03, the S&P 500 added 65.97 points (1.10%) to 6,040.04, and the Nasdaq gained 266.24 points (1.35%) to 20,031.13.
Crypto stocks rallied alongside Bitcoin’s price increase, with Microstrategy, Riot Platforms, and MARA Holdings climbing between 4.7% and 8.1%. NeueHealth soared 75% after announcing a $1.3 billion private buyout deal.
American Airlines edged up 0.6% after temporarily grounding flights due to technical issues.
While Wall Street navigated recent challenges, including rate hike concerns, Ripley highlighted robust economic factors and positive market positioning heading into 2025.
Markets closed early on Tuesday and will remain shut Wednesday for Christmas.
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