Wall Street Indexes Struggle to Stay Flatline Amid Fading Hopes of Santa Clause Rally

Barry Adams
23 Dec, 2024
New York City

Wall Street indexes edged higher on Monday in a holiday-shortened week as investors hope a rally in the final week may push indexes higher. 

The S&P 500 index advanced 0.8%, and the Nasdaq Composite gained 0.4% in early trading. 

The New York Stock Exchange closes early on Tuesday at 1 p.m. ET, and markets resume trading on Thursday, and financial markets are closed on Wednesday to celebrate Christmas Day. 

In the week ahead of light data flow, U.S. investors are looking forward to the release of durable goods orders and new home sales updates.

Durable goods orders are expected to increase in November, following a modest 0.2% rise in October, and new home sales are likely to show a rebound in activities, driven by an increase in demand in the South. 

Last week, the S&P 500 index and the Nasdaq Composite declined 2% after the Federal Reserve delivered the third consecutive rate cut of 0.25% and signaled a more cautious approach in 2025. 

However, economic indicators supported a strong economic backdrop after retail sales advanced, housing activities showed increasing momentum, and GDP growth in the third quarter was revised higher to 3.1%. 

But the Fed's signaling of slower rate reductions pressured market indexes around the world, as investors reviewed monetary policy decisions from eight central banks. 

Central bankers in the UK, Norway, and Japan worried about resurgent inflation and suggested a more cautious and gradual approach in future rate actions. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.2% to 5,942.40, the Nasdaq Composite rose 0.6% to 19,683.42, and the Russell 2000 index advanced by 0.9% to 2,242.37. 

The yield on 2-year Treasury notes edged higher to 4.33%, 10-year Treasury notes inched up to 4.56%, and 30-year Treasury bonds increased to 4.75%.

WTI crude oil decreased $0.37 to $69.08 a barrel, and natural gas prices edged up 8 cents to $3.82 a thermal unit.

Gold decreased by $4.64 to $2,617.69 an ounce, and silver rose by $0.16 to $29.66. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.41 to 108.20.

 

U.S. Stock Movers 

Xerox Holdings Corp. advanced 8.7% to $9.12 after the company announced the purchase of printer maker Lexmark for $1.5 billion. 

The purchase of Lexmark is expected to close in the second half of 2025. 

Xerox said it will finance the purchase in part by trimming its annual dividend payout in half to 50 cents from the current $1.0. 

The company plans to start the dividend cut from the first quarter. 

Honda Motor Co. Ltd. jumped 13.8% to $27.22, and Nissan Motor Co. Ld. declined 2.1% to $5.56 after the two companies announced in a joint conference about their merger plan. 

The deal is likely to be completed in the second half of 2025, and after the merger, the combined company is expected to be the third largest in the world with total vehicle sales of over 7.6 million.