Market Indices Surge Amid Santa Rally
Wall Street entered the festive Santa Rally season with a strong start, as all major indices and sectors posted gains during a shortened session ahead of the Christmas holiday. The S&P 500 rose by 1%, marking its third straight day of gains following last week’s turbulent Federal Reserve meeting. The Dow Jones Industrial Average followed suit, increasing by 0.9%, while the tech-heavy Nasdaq 100 led the charge with a 1.3% gain, recovering most of its losses from the previous week.
Consumer discretionary stocks, which have been the top-performing sector throughout the year, spearheaded the rally, supported by lighter-than-usual trading volumes. Notably, the SPDR S&P 500 ETF Trust (NYSE:SPY) climbed 1.1% to $601.01, and the Invesco QQQ Trust Series (NASDAQ:QQQ) surged 1.3% to $529.94, highlighting broad market optimism.
Tesla and Consumer Stocks Shine
Among the day’s standout performers, Tesla Inc. (NASDAQ:TSLA) soared by 7.35%, recording its best single-day performance since November. The electric vehicle giant’s surge fueled optimism within the broader consumer discretionary sector, which also saw gains from key players like Walmart Inc. (NYSE:WMT), Starbucks Corp. (NASDAQ:SBUX), and Netflix Inc. (NASDAQ:NFLX), which climbed 2.4%, 2.8%, and 2.5%, respectively.
Other sectors experienced moderate activity, with the Utilities Select Sector SPDR Fund (NYSE:XLU) showing modest growth at 0.5%. Meanwhile, in the fixed-income space, Treasury yields remained stable, with the 10-year benchmark holding at 4.6%, the highest level since May. The U.S. dollar index also edged higher, maintaining near one-year highs against the euro.
In commodities, gold prices gained 0.4%, while crude oil prices saw a 0.7% increase, reflecting a continued appetite for risk in the market.
Wall Street ends higher as Santa Claus rally period begins | REUTERS
Bitcoin and Crypto Stocks Rally
The cryptocurrency market witnessed a resurgence in risk appetite, with Bitcoin (CRYPTO: BTC) leaping 4% to surpass the $98,000 mark. This milestone sparked a rally in crypto-related stocks, with Microstrategy Inc. (NASDAQ:MSTR), MARA Digital Holdings Inc. (NASDAQ:MARA), and Coinbase Global Inc. (NASDAQ:COIN) all registering significant gains.
Market enthusiasm extended to exchange-traded funds, with the Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) outperforming others with a 2.3% gain, further highlighting the day’s focus on growth and consumer-driven stocks.
With the Santa Rally now underway, Wall Street enters the holiday season on a high note, supported by broad-based gains across sectors, stellar performances from major players, and a renewed appetite for cryptocurrencies.
