4:10pm: Tech surge lifts Nasdaq
Wall Street closed higher on Monday in a holiday-shortened trading session.
The Nasdaq led the gains, while the Dow Jones Industrial Average and S&P 500 also finished in positive territory.
The Dow Jones Industrial Average rose 85.81 points, or 0.2%, to close at 42,907. The S&P 500 gained 41.82 points, or 0.7%, ending the session at 5,974. The Nasdaq Composite advanced 195.69 points, or 1%, to finish at 19,765.
Technology stocks were the primary drivers of Monday's rally, with chipmakers and large-cap tech companies contributing significantly to the Nasdaq's outperformance. Nvidia and Tesla were among the notable gainers, rising 1.8% and 1.6%, respectively. Trading volume was relatively light ahead of the Christmas holiday.
The stock market will close early at 1 pm ET on Tuesday and remain closed on Wednesday for Christmas Day.
As 2024 draws to a close, all three major indexes are on track for substantial yearly gains. The Nasdaq Composite leads with a 30.4% increase year-to-date, followed by the S&P 500 at 24.3%, and the Dow Jones Industrial Average at 13.7%.
1:45pm: Rumble soaring
Shares of Rumble (NASDAQ: RUM) skyrocketed 93% on Monday after the company announced a significant $775 million investment from Tether (CRYPTO: USDT).
The announcement, made after markets closed on Friday, marks a major development for the technology platform, which has faced financial challenges despite its substantial user base of 67 million monthly active users.
Tether agreed to purchase 103.3 million shares of Rumble Class A Common Stock at $7.50 per share, representing a 4.3% premium to Rumble’s closing price on Friday. The deal values Rumble at approximately $2 billion.
Rumble plans to allocate $250 million of the proceeds to fuel growth initiatives, while the remaining $525 million will be used for a self-tender offer for up to 70 million shares at $7.50 each.
12:10pm: Investor caution prevails
Stocks were decidedly mixed in midday trading on Monday.
The Dow is down 0.3%, while the S&P 500 and Nasdaq Composite are in positive territory, up 0.3% and 0.6% respectively.
The divergence in index performance reflects ongoing market uncertainty as investors weigh various economic factors and corporate signals and comes during a holiday-shortened trading week. Trading volume is expected to be relatively muted this week.
Investors continue to digest recent comments from the Federal Reserve regarding interest rates, which have contributed to market volatility in recent sessions.
The market is also reacting to economic data released today, including a lower-than-expected consumer confidence index for December.
11:00am: Nordstrom to go private
Nordstrom announced that it will be acquired by the retail chain’s founding family and El Puerto de Liverpool in an all-cash transaction valued at approximately $6.25 billion, including debt.
Under the agreement, Nordstrom’s shareholders will receive $24.25 per share, representing a 42% premium over the company’s share price on March 18, 2024, before speculation emerged surrounding a potential deal.
As part of the transaction, a special dividend of up to $0.25 per share will be authorized, contingent on the deal's completion.
Once finalized, the company will become private, with the Nordstrom family owning a majority stake, at 50.1%, and Liverpool holding 49.9%.
9.53am: Nasdaq, S&P 500 gain but Dow drops
Wall Street faced mixed fortunes as Monday’s shortened trading week got underway and investors eyed any sign of a last-ditch Santa rally around Christmas.
The S&P 500 and Nasdaq opened in positive territory, gaining 0.1% and 0.4% respectively, though the Dow Jones dipped 0.3% early on.
A muted start to the week saw just four of the Dow’s 30 constituents head into the green, with Walmart Inc (NYSE:WMT, ETR:WMT)’s 2.6% drop placing it as the index’s biggest faller.
Heavyweight Apple Inc (NASDAQ:AAPL, ETR:APC) also edged lower, despite bullish commentary from Wedbush tipping the iPhone maker to become the first ever US$4 trillion company by early 2025.
Elsewhere, Advanced Micro Devices Inc (NASDAQ:AMD, ETR:AMD) and Broadcom Inc (NASDAQ:AVGO, ETR:1YD) were among the S&P and Nasdaq’s risers as each gained over 4%.
7.12am: Mixed start seen
Sentiment appeared mixed on Wall Street ahead of Monday’s trading and a shortened Christmas week.
Futures had the Nasdaq up 0.1% before the opening bell and continuing a recovery seen on Friday after stocks were battered by hawkish commentary from the Federal Reserve mid-week.
The Dow Jones was seen 0.3% lower in the meantime, with futures pointing to a 0.1% drop for the S&P 500.
Fed expectations for just two interest rate cuts in 2025, against anticipations for up to four previously, had hammered sentiment on both sides of the Atlantic.
Hopes for a traditional Santa rally for equities in the days around Christmas faced being dashed as a result.
Swissquote Bank analyst Ipek Ozkardeskaya noted such a Christmas boost could not be written off just yet though.
“In the absence of major economic data, this Xmas-shortened week could see a further rebound in the US equities - no one wants to miss the Santa rally,” Ozkardeskaya said.