Stocks erase earlier losses in thin trading the day after Christmas: Live updates
Published On Dec 26, 2024, 7:26 AM
Stocks saw a reversal of earlier losses on Thursday, largely driven by enthusiasm around the Santa Claus rally, which historically sees positive gains in the last days of December and early January. The S&P 500 and Nasdaq both gained significantly this week, with notable contributions from tech giants. Individual stocks such as UnitedHealth, Boeing, and Honeywell were key drivers for the Dow Jones Industrial Average. Additionally, KULR Technology surged after purchasing Bitcoin, while Toyota's shares jumped following a positive report on its return on equity targets. Conversely, some crypto ETFs faced declines after the cryptocurrency markets experienced a downturn. Overall, retail sales during the holiday season showed growth, highlighting consumer strength but also indicating possible excess spending from promotions.
Stock Forecasts
XRT
Positive
With the holiday season sales rising and consumer confidence strengthening, stocks linked to retail are likely to see positive momentum. Specifically, the SPDR S&P Retail ETF (XRT) could benefit from the positive holiday sales report and is expected to perform well as consumers continue to spend. However, crypto-related stocks are in a downturn and may not recover in the short term due to the declining trends in Bitcoin and Ethereum prices, affecting related ETFs. Therefore, adjustments in holdings might be necessary for investors exposed to crypto assets.
KULR
Positive
KULR Technology's significant rise in stock price due to its Bitcoin purchase indicates strong investor interest in the company's strategy to allocate cash toward crypto assets. Considering the recent price corrections in the Bitcoin market, there may be volatility ahead. However, KULR's bold strategy may position it favorably in the long term, attracting more interest in Bitcoin-related technology stocks. Therefore, investors could consider KULR Technology as a potential upward move post-correction.
IBIT
Negative
Given the decline in crypto ETFs like the iShares Bitcoin Trust (IBIT) and the iShares Ethereum Trust (ETHA), driven by the downturn in crypto markets, these are anticipated to continue trending downwards due to market conditions, particularly if Bitcoin prices remain unstable. Thus, investors should look to mitigate risks in this sector.
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