24th December 2024 – (Washington) U.S. stocks ended higher on Monday, buoyed by a strong performance in the technology sector, as investors interpreted the Federal Reserve’s indications that interest rates may remain elevated through 2025.
The Dow Jones Industrial Average gained 66.69 points, or 0.16%, closing at 42,906.95. The S&P 500 increased by 43.22 points, or 0.73%, to finish at 5,974.07, while the Nasdaq Composite Index rose 192.29 points, or 0.98%, to close at 19,764.88.
Among the 11 primary sectors of the S&P 500, eight finished in positive territory, with communication services and technology leading the way, adding 1.35% and 1.26%, respectively. Conversely, consumer staples and materials lagged, declining by 0.57% and 0.12%.
Economic reports revealed a notable decline in U.S. consumer confidence for December, marking the steepest month-over-month drop since November 2020, as concerns about the economic outlook intensified among Americans. Additionally, orders for durable goods, which encompass significant purchases like aircraft, appliances, and computers, fell by 1.1% in November, representing the sharpest decline since June.
Despite these mixed economic signals, Wall Street faces a relatively light economic calendar this week, providing an opportunity for investors to reassess market conditions as 2024 draws to a close. Trading will conclude early at 1pm on Tuesday, with markets closed on Wednesday for the Christmas holiday.
Some investors maintain optimism for a potential Santa Claus rally, historically characterised by an average gain of 1.3% in the S&P 500 during the final five trading days of the year and the first two days of January, according to the Stock Trader’s Almanac.
“With the market’s primary uptrends still intact, we are not giving up on the potential for a Santa Claus to come to Broad & Wall this year,” stated Craig Johnson, chief market technician at Piper Sandler, in a recent note.
