Wall Street Ends Higher as Santa Rally Begins
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 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 yielded around 4.61% on Tuesday, its highest level since May. Traditionally, higher debt costs crimp growth stocks.
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.
Source : Reuters
