Stock market today: Wall Street ends higher at the start of a holiday-shortened week

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Today in the stock market, Wall Street saw further gains as it embarked on what is anticipated to be a tranquil trading week, shortened due to the holiday season.

The S&P 500 displayed a 0.4% increase, concluding just shy of 0.5% below its record high, which was established almost two years ago. This notable benchmark has recently maintained a winning streak, achieving eight consecutive weekly gains, marking its lengthiest run since 2017.

Simultaneously, the Dow Jones Industrial Average ascended by 0.4%, while the Nasdaq composite ended the day 0.5% higher. Although trading activity was relatively subdued following the Christmas Day holiday, gains were widespread, with advancers surpassing decliners by an impressive ratio of nearly 3 to 1 on the New York Stock Exchange.

Noteworthy contributions to these gains emanated from the technology and industrial sectors. Intel, with a substantial 5.2% surge, led the way among S&P 500 stocks, while Caterpillar also made a noteworthy addition of 1.8%.

In the energy sector, stocks advanced as the price of U.S. crude oil experienced a 2.7% increase, with Hess closing 1.4% higher.

The market also benefited from solid gains by smaller company stocks, as evidenced by the Russell 2000 index, which rose by 1.2%.

Regarding Treasury yields, they exhibited mixed performance, with the yield on the 10-year Treasury remaining stable at 3.90%.

In terms of specific stock movements, some companies experienced substantial increases due to deal news. Notably, drugmaker Bristol-Myers Squibb announced a $4.1 billion acquisition of RayzeBio, following its recent $14 billion purchase of Karuna Therapeutics. Bristol-Myers shares decreased by 1.6%, while RayzeBio surged to $61.40, approaching the acquisition price of $62.50 per share.

HollySys Automation Technologies saw a 5.2% surge following an updated buyout offer from a consortium led by Dazheng Group Acquisition.

Additionally, Stratasys soared by 13% to $14.82 per share after Nano Dimension offered $16.50 per share in cash for the acquisition of the 3D printer manufacturer. This followed Stratasys’ rejection of a previous buyout bid from Nano Dimension in April.

Furthermore, Gracell Biotechnologies witnessed an impressive surge of 60.3% after agreeing to be acquired by AstraZeneca, a Shanghai-based biopharmaceutical company.

Summing up the day’s performance, the S&P 500 closed with a gain of 20.12 points, reaching 4,774.75. The Dow Jones Industrial Average increased by 159.36 points to 37,545.33, while the Nasdaq added 81.60 points to reach 15,074.57.

As we approach the end of 2024, the S&P 500 has achieved a remarkable year-to-date increase of over 24%, while the Nasdaq has surged by 44%. This robust performance has been buoyed by reports indicating a decline in inflation, despite the economy exhibiting strength beyond expectations.

However, the Federal Reserve faces the delicate task of balancing economic growth with inflation control through interest rate adjustments. It is worth noting that traders are largely speculating that the Federal Reserve will reduce its main interest rate by a minimum of 1.50 percentage points by the end of the coming year.

The week ahead is relatively light in terms of economic reports, with key highlights including the Federal Reserve Bank of Richmond’s monthly manufacturing activity index and the release of weekly unemployment benefit claims and preliminary November wholesale inventory data by the Labor Department and the Commerce Department, respectively.

Meanwhile, European markets remained closed on this trading day. In Asia, Shanghai’s benchmark index experienced losses due to significant selling pressure on technology and computer chip-related shares. Concerns were reignited regarding trade tensions with the U.S. and other Western countries. Additionally, several video gaming companies announced share buybacks in response to draft guidelines issued by Chinese regulators, causing shares in game makers like Tencent and Netease to decline. The impact of Beijing’s efforts to support the industry and approve more than 100 games was uncertain due to the closure of Hong Kong markets on this particular day.

In summary, today’s stock market performance demonstrated continued gains, with various sectors contributing to the positive momentum. While economic indicators and corporate developments influenced individual stock movements, the overarching sentiment remains positive as we approach the conclusion of the year.

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More about Stock Market Gains

• S&P 500
• Dow Jones Industrial Average
• Nasdaq
• Intel
• Caterpillar
• Hess
• Bristol-Myers Squibb
• RayzeBio
• HollySys Automation Technologies
• Stratasys
• Nano Dimension
• Gracell Biotechnologies
• AstraZeneca
• Federal Reserve
• Chinese Regulatory Actions
• Shanghai Composite Index
• Beijing’s Support Measures