Strong Performance in U.S. Stocks Before Christmas, Tech Stocks Drive Gains Across Major Indexes
On Tuesday (December 25, Beijing time), U.S. stocks closed early ahead of Christmas, with all three major indices rising. The S&P 500 index rose 1.10%, closing at 6040.04, regaining the 6000 point mark; the NASDAQ index grew 1.35%, closing at 20031.13, reclaiming the 20,000 point threshold; the Dow Jones Industrial Average increased by 0.91%, reaching 43297.03 points. Technology stocks led the surge, becoming the main driving force in the market that day.
Technology Stocks Lead Gains, Tesla Rises 7.4%
The tech sector performed brilliantly, with Tesla rising 7.4%, marking its largest single-day gain in six weeks, propelling the non-essential consumer goods sector up by 2.6%, making it the strongest performing sector in the S&P 500 index. At the same time, chip makers Broadcom and Nvidia rose by 3.2% and 0.4%, respectively. Nvidia's recently launched Blackwell Ultra product line has garnered attention, with its core B300 GPU chip significantly enhancing performance and memory configuration, injecting new dynamism into the tech market.
Light Trading, Awaiting "Christmas Rally"
With the Christmas holiday approaching, this week's trading time is shortened, leading to light market trading, but investors remain hopeful for a "Christmas rally." According to historical data, the S&P 500 index averages an increase of 1.3% during the last five trading days of the year and the first two trading days of the new year. The S&P 500 index is expected to achieve an annual increase of over 20% for the second consecutive year, with seven major tech stocks contributing more than half of the gain.
Nasdaq 100 Weight Adjustment, Tesla and Broadcom Weights Reduced
The Nasdaq 100 index undergoes a weight rebalancing, with the weights of Apple, Nvidia, Microsoft, and Amazon rising, while the weights of Tesla and Broadcom are decreased. Specifically, Apple's weight increased from 9.2% to 9.8%, Nvidia's from 7.9% to 8.4%, while Tesla's weight decreased from 4.9% to 3.9%.
Market Monitors Trump Policies and Fed Developments
As the new year approaches, the market remains vigilant regarding the implementation sequence of Trump's policies and their potential impact on the economy. Analysts point out that Trump's anticipated inflation policies are already reflected in the monetary policy outlook of the Federal Reserve. Next year, the Federal Reserve will welcome several hawkish members, which may introduce uncertainty to interest rate decisions.
Key Stocks and Corporate News
- Tesla: Shanghai energy storage superfactory is expected to be completed within the year and start production in 2025, with an annual plan to produce 10,000 Megapack energy storage batteries.
- Apple: The next generation M5 chip series will be launched gradually in 2024, with M5 Ultra planned for mass production in 2026.
- Google: Proposes modifications to search results to comply with the EU Digital Markets Act, aiming to avoid heavy fines for favoring its own products.
- American Airlines: Temporarily grounded all domestic flights due to technical issues, subsequently resuming operations, with stock price edging higher.
Summary and Outlook
Despite strong U.S. stock performance, analysts hold a cautious attitude toward future trends. As the year ends, the market enters a consolidation phase, and investors need to closely monitor changes in Federal Reserve policies and the progress of policy implementation following Trump's inauguration to gauge future market directions.
