Yazılar

S&P 500 Rises 1% on Christmas Eve, Tech Stocks Drive Gains: Live Updates

/in /tarafından

The U.S. stock market saw a strong performance on Christmas Eve, with the S&P 500 gaining 1.1% to close at 6,040.04. The Dow Jones Industrial Average also rose by 0.91%, adding 390.08 points to reach 43,297.03, while the Nasdaq Composite climbed 1.35% to finish at 20,031.13. A significant contributor to the Nasdaq’s rise was a 7.4% increase in Tesla’s stock price, alongside gains in Amazon and Meta Platforms, which each rose over 1%.

The New York Stock Exchange closed early at 1 p.m. ET, and the bond market followed suit, closing at 2 p.m. The market will remain closed on Wednesday for Christmas Day.

Tuesday’s gains marked the beginning of the “Santa Claus rally,” a seasonal trend in which the market tends to see stronger performance during the last five trading days of the year and the first two days of January. Historical data from LPL Research shows that since 1950, the S&P 500 has averaged a 1.3% return during this period, far outpacing the typical seven-day return of 0.3%.

Despite the upbeat performance, experts advise caution. Paul Hickey, co-founder of Bespoke Investment Group, mentioned on CNBC’s “Squawk Box” that while the market shows positive momentum, it’s important to temper enthusiasm, as the market has already rallied significantly.

Over the past two days, the S&P 500 has gained 1.8% for the week, with the Dow up about 1%. The Nasdaq has surged 2.3% week-to-date, fueled by strong gains in megacap tech stocks. Additionally, the S&P 500 has turned positive for the month, rising by 0.1%. The tech-heavy Nasdaq has seen an impressive 4.2% increase in December, with major players like Google’s parent Alphabet up 16%, Apple up nearly 9%, and Tesla soaring by about 34%. However, the blue-chip Dow remains down by around 3.6% for the month, on track for its worst monthly performance since April.

On the corporate front, American Airlines experienced fluctuations in its stock price on Tuesday after the airline temporarily grounded all flights in the U.S. due to a technical issue during one of the busiest travel days of the year. Despite the disruption, the stock ended the session up 0.6%.

In other retail news, analysts at Jefferies expressed optimism about toy sales this holiday season. Their store checks indicated high traffic and lower inventory levels compared to earlier in the season. Board games, in particular, were reported as strong sellers both in-store and online. Jefferies also noted that discounts were lower than the peak Black Friday levels.

In the toy sector, Mattel and Hasbro stocks showed mixed results. While Mattel’s shares are down over 5% year-to-date, Hasbro has seen a more significant gain of 11%. However, Hasbro has faced recent declines, with its stock down nearly 13% month-to-date, while Mattel’s shares have fallen 6%.

 

Nvidia Faces Antimonopoly Investigation in China, Shares Decline

/in /tarafından

Nvidia’s shares experienced a decline of about 2.6% on Monday after China’s State Administration for Market Regulation (SAMR) announced an investigation into the company over potential violations of the country’s antimonopoly laws.

The investigation focuses on Nvidia’s 2020 acquisition of Mellanox, an Israeli technology company specializing in network solutions for data centers and servers. The Chinese regulator is examining specific agreements related to this acquisition, according to an official statement.

This development comes amid escalating tensions between the U.S. and China, particularly in the semiconductor industry. The Biden administration recently imposed new restrictions on semiconductor toolmakers, and the investigation could be linked to broader geopolitical factors. The U.S. has already restricted Nvidia and other chipmakers from selling their most advanced AI chips to China, aiming to curb the country’s military advancements.

Nvidia, which has seen its stock rise dramatically in 2024 due to growing demand for AI technologies, responded to the investigation, expressing willingness to cooperate with regulators. In a statement, Nvidia emphasized that its success is due to its products’ merits and customer satisfaction, highlighting that clients have the freedom to choose from various solutions.

 

Wall Street Reaches Record Highs Following Trump’s Presidential Election Win

/in /tarafından

Wall Street surged to record levels on Wednesday as Donald Trump’s election victory propelled key U.S. market indexes higher. In a comeback that restores him to the White House four years after his first term ended, Trump’s win sparked optimism for tax cuts and deregulation, although market watchers noted potential challenges from possible tariff hikes, which could drive up inflation and the federal deficit.

Trump’s victory spurred a rally in “Trump trades,” with U.S. Treasury yields rising, the dollar strengthening, and Bitcoin hitting a record high. “The market response indicates that a Trump victory was not fully priced in, reflecting an extension of the ‘Trump trade’ that assumes Republicans will control both the House and Senate,” noted Candice Bangsund, a portfolio manager at Fiera Capital.

Domestic-focused stocks surged on the news, especially in the small-cap Russell 2000 index, which jumped 4.7% to a nearly three-year high. Small-cap stocks are expected to benefit from lower regulatory burdens, favorable tax policies, and minimal exposure to potential import tariffs. “Small caps are poised for a strong catch-up trade over the next 6-12 months,” said Sean Gallagher, Lazard’s global head of Small Cap Equity.

The market volatility index (VIX) dropped nearly five points, reaching its lowest level since September, as investors embraced the likelihood of a stable policy environment.

In individual market performance, the Dow Jones Industrial Average rose 1,345 points (3.19%) to reach 43,566.98, the S&P 500 climbed by 120.78 points (2.1%) to 5,903.45, and the Nasdaq Composite rose 436.48 points (2.37%) to 18,875.65. Financials led the S&P 500’s gains with a 5.5% surge, while the KBW Bank Index recorded its best day in four years. Energy, Industrials, and Consumer Discretionary sectors each gained around 3%, while rate-sensitive sectors like Real Estate and Utilities saw declines due to concerns that Trump’s policies might increase inflation, reducing the likelihood of future rate cuts—a significant driver of recent rallies.

The Federal Reserve is anticipated to reduce interest rates by 25 basis points on Thursday. However, with Trump’s policies expected to increase inflationary pressure, traders have begun lowering their expectations for additional rate cuts next year. Bangsund commented, “The sharp rise in Treasury yields may weigh on stock valuations.”

Stocks projected to benefit under Trump’s second term posted strong gains, including Trump Media & Technology Group, which rose 9.3%. Tesla also jumped 14%, likely influenced by Elon Musk’s vocal support for Trump’s campaign. Gains extended to cryptocurrency companies, energy stocks, and prison operators, while renewable energy stocks experienced declines.

Attention has now turned to whether Republicans will retain their newly gained majority in the Senate and potentially secure the House of Representatives, an outcome that could further shape the market’s trajectory over the next four years.