Wall Street Sets New Records in Holiday-Shortened Session
NEW YORK (AP) — Wall Street closed higher and set fresh records Wednesday on a shortened trading day ahead of the holiday break. The S&P 500 index rose 22.26 points, or 0.3%, to 6,932.05. The Dow Jones Industrial Average gained 288.75 points, or 0.6%, to finish at 48,731.16, while the Nasdaq composite added 51.46 points, or 0.2%, to close at 23,613.31.
Trading volume was extremely light, with roughly 1.8 billion shares traded on the New York Stock Exchange—about a third of the typical daily average—as markets closed early for Christmas Eve. Markets will remain closed for Christmas Day on Thursday and reopen for a full session on Friday, though trading volumes are expected to stay subdued at year’s end as many investors have already closed out their positions.
Strong Year for Wall Street
The S&P 500 is up over 17% for the year, as investors have embraced the deregulatory policies of the Trump administration and remain optimistic about advancements in artificial intelligence. These factors are expected to help boost profits not only for technology firms but also for other major U.S. companies. Among the year’s standout performers are Nvidia and Micron Technologies, both of which manufacture chips and components powering the rapid expansion of data centers nationwide.
Economic Outlook and Fed Policy
Investors are closely watching the trajectory of the U.S. economy and anticipating the Federal Reserve’s next move on interest rates. Most market participants expect the Fed to hold rates steady at its next meeting in January.
The U.S. economy expanded at a surprisingly robust 4.3% annual rate in the third quarter—its fastest pace in two years—driven by resilient consumer spending despite ongoing inflation. However, recent reports show that consumer confidence remains shaky, with concerns about persistently high prices. The labor market has begun to slow, and retail sales have softened.
Jobless Claims Remain Low
Despite some signs of a weakening job market, applications for unemployment benefits remain at historically healthy levels. For the week ending Dec. 20, jobless claims fell by 10,000 to 214,000, according to the Labor Department, underscoring ongoing labor market strength. Analysts surveyed by FactSet had forecast 232,000 new applications.
Corporate Highlights
Dynavax Technologies shares soared 38.2% after French pharmaceutical giant Sanofi announced a $2.2 billion acquisition of the California-based vaccine maker. Sanofi will add Dynavax’s hepatitis B vaccines to its portfolio, as well as a shingles vaccine currently in development.
Novo Nordisk shares climbed 1.8% after U.S. regulators approved a pill version of its blockbuster weight-loss drug Wegovy. Despite this positive news, Novo Nordisk shares remain down almost 40% for the year amid growing competition, notably from Eli Lilly, whose shares are up 40% in 2023.
Global Markets and Commodities
European stock markets fluctuated between slight gains and losses on Wednesday. In Asia, trading was also subdued, with Hong Kong’s market edging up 0.2% and Japan’s Nikkei 225 slipping 0.1%.
In commodities, gold was flat at $4,502 an ounce, while silver rose 0.8% to $71.69. U.S. crude oil prices remained unchanged, at $58.38 a barrel.
Markets will resume regular trading hours on Friday.
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