Azzad MarketWeek
Stocks delivered for investors last week as positive economic data and bullish holiday cheer powered the start of a “Santa Claus rally” past consumer bah humbug sentiment.
The Standard & Poor’s 500 Index rose 1.40 percent, while the Nasdaq Composite Index advanced 1.22 percent. Meanwhile, the Dow Jones Industrial Average gained 1.20 percent.
AI Stock Sleigh Delivers
Stocks rallied at the start of the week, riding pre-holiday momentum as artificial intelligence (AI) related technology names continued to drive gains.
Fresh data out Tuesday initially quashed market momentum, reflecting investor concern that the stronger-than-expected Q3 economic growth might dissuade the Fed from adjusting interest rates in 2026.
But those fears appeared to subside after a Fed official said the U.S. is “way behind the curve in terms of lowering rates” compared with other central banks around the world. Those comments, combined with continued momentum and market leadership from the AI trade, boosted sentiment and lifted the S&P 500 to a record close despite a fresh consumer confidence reading that missed expectations.
Christmas Eve brought more of the same, kicking off what’s known as the “Santa Claus rally” period—the last five trading days of the year and the first two trading days of the new year. The S&P hit new intraday and closing highs on Wednesday’s shortened trading day—its fifth consecutive session of gains.
While stocks largely went sideways on Friday amid thin holiday volume, the S&P 500 hit another intraday high, and all three major averages posted weekly gains. It was the S&P’s fourth weekly gain in five weeks.
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