[New York Stock Market] Unified Rise Ahead of Christmas Day... Big Tech Strength

Tesla surges 7.35%... Magnificent 7 rise
'Santa Rally' expectations... Warnings of "passion suppression" too

The three major indices of the U.S. New York Stock Exchange all closed higher on the 24th (local time), a day before the Christmas holiday. With the strength of big tech stocks, the three major indices rose by around 1%, raising expectations for a 'Santa Rally' where the stock market rises at the end of the year and the beginning of the new year.

On that day in the New York stock market, the Dow Jones Industrial Average (Dow Index), centered on blue-chip stocks, closed at 43,297.03, up 390.08 points (0.91%) from the previous trading day. The S&P 500 Index, focused on large-cap stocks, rose 65.97 points (1.1%) to 6,040.04, and the Nasdaq Index, centered on tech stocks, jumped 266.24 points (1.35%) to 20,031.13, recovering the 6,000 and 20,000 levels respectively.

On that day, the New York Stock Exchange closed early at 1 p.m. ahead of the Christmas holiday the next day. Amid reduced trading volume, the 'Magnificent 7' large tech stocks all rose, driving the index gains. U.S. electric vehicle maker Tesla surged 7.35%. Apple rose 1.15%, Nvidia 0.39%, and Microsoft (MS) 0.94%. Alphabet, Google's parent company, increased by 0.81%, while Meta, Facebook's parent company, and Amazon jumped 1.32% and 1.77%, respectively. American Airlines, which temporarily suspended all flights due to a technical glitch but lifted the suspension after an hour, rebounded from a decline to close up 0.58%.

Market expectations for a Santa Rally are rising. The Santa Rally refers to the New York stock market rising during the last five trading days of the year and the first two trading days of the new year. If the indices rise this year as well, this day could mark the start of the Santa Rally. Although investor sentiment was significantly dampened after the U.S. Federal Reserve (Fed) hinted on the 18th about slowing the pace of interest rate cuts next year, relief is spreading in the market as inflation indicators came in below expectations. According to the U.S. Department of Commerce, the core Personal Consumption Expenditures (PCE) price index for November rose 0.1% month-over-month and 2.8% year-over-year, below expert forecasts of 0.2% and 2.9%, respectively.

Wall Street opinions on the Santa Rally are divided between optimism and caution.

London Stockton of Net Davis Research said, "The Santa Rally may still be alive, and strong seasonality could be maintained until the end of the year."

On the other hand, Paul Hickey, co-founder of Bespoke Investment Group, said, "There are many good points to consider, but at the same time, since the market has recovered, now is the time to temper enthusiasm."

Government bond yields are moving within a stable range. The U.S. 10-year Treasury yield, a global bond yield benchmark, remains at the previous trading day's level of 4.59%, while the 2-year Treasury yield, sensitive to monetary policy, fell 1 basis point to 4.33% compared to the previous day.

Meanwhile, the New York Stock Exchange will be closed on Christmas Day, the 25th.