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Outside the holiday-decorated New York Stock Exchange building earlier this month.Key Takeaways
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The S&P 500 jumped 1.1% in a shortened Christmas Eve trading session Tuesday, Dec. 24, 2024, boosted by strength in the tech sector.
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Tesla stock soared as analysts forecast strong quarterly deliveries but highlighted the company's long-term ambitions as more significant catalysts.
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Broadcom shares extended their December rally, which has been fueled by upbeat AI expectations for the chipmaker.
Major U.S. equities indexes offered a dose of holiday joy for investors, pushing higher during a shortened Christmas Eve trading session.
The S&P 500 gained 1.1% on Tuesday, while strength in the tech sector helped the Nasdaq surge 1.4%. The Dow added 0.9% as financial markets prepared for Wednesday's Christmas break.
Tesla (TSLA) shares powered 7.4% higher, leading the charge for the S&P 500 and spearheading an upbeat trading session for the Magnificent Seven tech stocks. Barclays analysts noted that, while they expect the electric vehicle maker to post record fourth-quarter deliveries, the effect on the stock could be minimal. Rather than short-term metrics, the investment bank believes Tesla's recent momentum hinges on its long-term opportunities in self-driving and artificial intelligence.
Super Micro Computer (SMCI) shares gained 6%, partially recovering from a string of losses that coincided with last week's removal of the stock from the Nasdaq 100 Index. Earlier this month, the server and data storage provider received an extension from the Nasdaq exchange for the filing of its delayed annual report until February.
The December rally continued for shares of Broadcom (AVGO), which added 3.2%. The chipmaker's Christmas advance extended gains posted in the previous session after UBS analysts increased their AI revenue estimates for Broadcom and boosted their price target on the stock.
Starbucks (SBUX) shares ticked 2.8% higher. The union-backed baristas who have been participating in a strike against the coffee chain are expected to return to work tomorrow. A Starbucks executive said Monday that around 97% to 99% of stores will remain open, adding that the strike wasn't expected to have a major effect on operations nationwide.
The weakest Christmas Eve performance in the S&P 500 belonged to shares of Walgreens Boots Alliance (WBA), which slipped 1.2%. The stock enjoyed a bump earlier in December following reports that the pharmacy operator was in talks about selling itself to private equity firm Sycamore Partners, but it has been trending lower since and remains down nearly 65% in 2024.