U.S. equities finished the day higher, with both the Dow Jones and the S&P 500 hitting fresh record closes. The lift came from a bounce in AI‑related shares and surprisingly solid job‑market data.
Market Overview
All three major indexes posted gains for the fifth straight session. The Dow rose 0.6% to 48,731 points, the S&P 500 added 0.3% to end at 6,932, and the Nasdaq climbed 0.2% to 23,613. Trading volume was thin because Thursday is a market holiday for Christmas.
AI Stocks and Economic Data Boost Sentiment
After last week’s sell‑off in AI names over concerns of high valuations, the sector rebounded. Analysts say new AI models from OpenAI and Meta are keeping the conversation alive. At the same time, new claims for unemployment benefits fell unexpectedly, suggesting the labor market remains resilient.
Sector Highlights
- Technology: Micron Technology jumped 3.8% to a record $286.68 after issuing a strong outlook.
- Financials: Bank stocks helped lift the market, with the financial sector up about 0.5%.
- Energy: The only sector in the red was energy, slipping slightly.
Holiday Trading and the “Santa Claus Rally”
With the market closed Thursday, the holiday season now includes the traditional “Santa Claus rally” – a period that often sees the S&P 500 rise in the last five trading days of the year and the first two of January. That window opened on Wednesday and runs through January 5.
Notable Stock Moves
- Nike surged 4.6% after its lead independent director, Apple CEO Tim Cook, bought about $3 million of shares.
- Intel fell 0.5% after news that Nvidia paused chip‑testing using Intel’s 18A process.
- Dynavax Technologies rocketed 38% following Sanofi’s $2.2 billion acquisition announcement.
Market Sentiment and Outlook
The “fear gauge” (VIX) stayed low, near levels not seen since December 2024, indicating calm despite the year’s volatility. Traders still expect roughly 50 basis points of Fed rate cuts next year, but a cut in January looks unlikely. All three major indexes are on track for their third straight annual gain.
Disclaimer
Remember, this is my perspective, not a prediction. Do your own research and consider your personal risk tolerance before making any investment decisions.