US Stocks Rally in Shortened Holiday Session, Tech Leads Gains
U.S. stocks surged during Tuesday’s abbreviated holiday trading session, with the Dow Jones Industrial Average climbing nearly 400 points before the 1 p.m. market close. Tech stocks, particularly those listed on the Nasdaq index, spearheaded the rally.
Notable performers in the tech sector included Tesla, Broadcom, Netflix, and Amazon, all of which contributed significantly to the day’s gains.
The upward momentum coincided with the start of the “Santa Claus trading window,” a historically bullish period encompassing the last five trading days of the year and the first two of the new year. According to data dating back to 1950, the S&P 500 has averaged a 1.3% gain during this period, with positive returns occurring 79% of the time. Bank of America reports that when including data from 1928, the average gain increases to 1.6%.
At the close of the shortened session, the S&P 500 rose 1.10% to 6,040.04, while the Dow Jones Industrial Average advanced 0.91% to 43,297.03. The tech-heavy Nasdaq Composite led the indices, climbing 1.35% to 20,031.13.
In other market news, American Airlines briefly grounded all flights due to a technical issue, while a prominent economist forecasted a 0% probability of a U.S. recession in 2025. Consumer confidence has reportedly dropped to near-recession levels, and a market strategist has identified four areas of the stock market expected to outperform in the coming year. Investors are also reviewing Wall Street’s 2025 S&P 500 targets for further guidance.
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