The US stock market finished higher on Tuesday, marking the start of the so-called Santa Claus rally period. The Dow Jones Industrial Average rose 0.5%, while the S&P 500 added 0.8% and the Nasdaq Composite jumped over 1%. Trading conditions were expected to be thin due to the early closure at 1 p.m. ET, but the three major indexes still managed to close on a high note.
Tech-heavy shares led the way in the rally, with Tesla and Starbucks Corp. among the winners. Walmart’s stock also climbed 1.3%, snapping a four-day losing streak, while J.P. Morgan analysts expressed optimism about broadline retailer stocks going into 2025.
Meanwhile, space-exploration company Intuitive Machines Inc. continued its rally, rising 1.5% in premarket trading and putting the stock on pace for a three-day winning streak.
The Santa Claus rally period is expected to last until January 3, covering the last five trading days of the year plus the first two of the new year. Historically, this period has seen respectable gains, with average S&P 500 gains averaging around 1.3% since 1969.
As markets prepare for a holiday closure on Wednesday, investors are expected to be cautious before the Christmas break. However, the start of the Santa Claus rally suggests that the US economy is showing signs of resilience ahead of the new year.
Source: https://www.marketwatch.com/livecoverage/stock-market-today-dow-futures-steady-ahead-of-early-holiday-close