Stock market today: Nasdaq, S&P 500, Dow embrace 'Santa Claus' rally ahead of Christmas break
Published On Dec 24, 2024, 11:02 AM
US stock markets experienced notable gains in the final trading session before the Christmas holiday, with the S&P 500 rising about 0.7%, Nasdaq Composite climbing roughly 1%, and Dow Jones increasing around 0.4%. This surge is attributed to a rebound in tech stocks, particularly Nvidia, leading the upward trend. Market sentiment is optimistic as traders expect a continuation of this momentum during the traditional 'Santa Claus' rally, which historically sees gains in late December to early January. Investors are also reassessing interest rate predictions from the Federal Reserve, with expectations of stability in the upcoming months.
Stock Forecasts
NVDA
Positive
Nvidia has shown substantial growth this year but faces potential challenges in 2025. Given the current bullish sentiment and positioning in the market leading to the holiday season, NVIDIA is predicted to maintain positive momentum short-term. Investors could benefit from this trend in the upcoming weeks.
SPY
Positive
The broader market is participating in a traditional seasonal rally, and ETFs linked to consumer discretionary, technology, and energy sectors may benefit from ongoing positive sentiment. ETFs such as SPDR S&P 500 ETF Trust (SPY) and Technology Select Sector SPDR Fund (XLK) can see upward trends. However, ongoing inflation talks and potential Fed actions in early 2025 could temper gains in the longer run.
AAL
Neutral
American Airlines faced operational challenges with a temporary flight grounding due to technical issues, impacting its stock negatively. As operational normalcy resumes, a cautious recovery is expected. However, with holiday travel peaks, investors should watch closely for the next set of earnings which could provide insights into the company’s resilience and operational adjustments.
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