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The Key Takeaways
- 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.
- Tesla stock soared as analysts forecast strong quarterly deliveries but highlighted the company's long-term ambitions as more significant catalysts.
- Broadcom stock prices extended their December rally. This was fuelled by the positive AI expectations of the chipmaker.
The major U.S. stock indexes pushed higher on Christmas Eve, bringing holiday cheer to investors.
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 said that while they anticipate the electric car maker to report record fourth quarter deliveries, it could have a minimal effect on its stock. Barclays believes Tesla’s recent success is not based on metrics that are short-term, but rather its opportunities for long-term growth in artificial intelligence and self-driving.
Super Micro Computer shares (SMCI), which were removed from the Nasdaq 100 Index last week, gained 6%. This was a partial recovery from a series of losses. The Nasdaq Exchange granted an extension to the data storage and server provider earlier this month for its late annual report.
Broadcom’s (AVGO) shares continued to rally in December, gaining 3.2%. Broadcom (AVGO) shares extended their Christmas gains from the previous session, after UBS analysts raised their AI revenues estimates and increased the price target for the stock.
Starbucks (SBUX) shares ticked 2.8% higher. Baristas, who are unionized and have participated in a coffee-chain strike since last week, will return to their jobs tomorrow. Starbucks said on Monday that between 97% and 99% stores will be open. They also added that they don’t expect the strike to have any major impact.
The weakest Christmas Eve performance in the S&P 500 belonged to shares of Walgreens Boots Alliance (WBA), which slipped 1.2%. Stocks of Walgreens Boots Alliance (WBA) rose in early December after reports indicated that Sycamore Partners was interested in buying the pharmacy. However, since then they have been falling and are down 65% by 2024.
Celanese, a chemical manufacturer and supplier to industry, saw its shares fall by 1.2%. RBC has recently reduced its price target for Celanese, citing the pressure that high energy prices are putting on company margins.
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