Volatility fell to its lowest level in a year
US stock markets closed higher Monday, marking a third consecutive winning session for major indexes as artificial intelligence-related stocks continued their rebound heading into a holiday-shortened trading week.
The S&P 500 gained 43.99 points, or 0.64%, to finish at 6,878.49, according to CNBC. The Dow Jones Industrial Average advanced 227.79 points, or 0.47%, to close at 48,362.68, while the Nasdaq Composite climbed 121.21 points, or 0.52%, to end at 23,428.83.
Technology sector leads gains
Technology stocks provided the strongest lift to the broader market, with chipmaker Nvidia rising 1.5% and delivering the largest contribution to the S&P 500’s advance, Reuters reported. The gains followed a Reuters report that the company told Chinese clients it aims to begin shipping its second-most powerful AI chips to China before the Lunar New Year holiday in mid-February.
Micron Technology climbed about 4%, while Oracle advanced more than 3%, according to CNBC. The PHLX semiconductor index rose 1.1%.
“I don’t necessarily think it’s going to go much higher; it’s going to continue to churn,” Ken Polcari, partner and chief market strategist at Slatestone Wealth in Jupiter, Fla., told Reuters.
Ten of the 11 S&P 500 sectors posted gains during the session. Materials led the advance with a 1.4% increase, followed by financials, which rose 1.3% to close at a record level, Reuters reported. The energy sector climbed 1.1% as commodity prices jumped.
Precious metals drove gains in the materials sector, with Newmont and Freeport-McMoRan each rising 3% as gold and silver futures hit record highs, CNBC reported. Gold rose more than 1% to $4,443.10 an ounce, while silver climbed 2.3% to $69.06.
Individual stock movements
Warner Bros. Discovery shares rose 3.5% after Oracle co-founder Larry Ellison agreed to provide a personal guarantee of $40.4 billion of equity financing for Paramount Skydance’s offer to acquire the company, Reuters reported. Paramount climbed 4.3%.
Tesla gained 1.6% after CEO Elon Musk’s 2018 pay package was restored by the Delaware Supreme Court.
Clearwater Analytics Holdings rallied 8.1% after private equity firms led by Permira and Warburg Pincus agreed to acquire the investment and accounting software maker for about $8.4 billion, including debt.
Outlook
Trading volumes remained light at 14.57 billion shares, compared with the 20-day average of 16.9 billion, Reuters reported. Wall Street’s fear gauge, the CBOE volatility index, closed at its lowest level since December 2024 at 14.08.
The New York Stock Exchange will close early Wednesday at 1 pm ET on Christmas Eve and remain closed Thursday for Christmas Day, according to CNBC.
