U.S. stocks surged in a late-session rally, defying thin trading volumes as algorithms added momentum to a pre-holiday boost. The S&P 500 climbed 1.3%, the Dow Jones Industrial Average gained 0.8%, and the Nasdaq Composite jumped 1.6%, marking one of the strongest December moves. While market activity typically slows during the holiday week, automated trading strategies amplified gains, signaling optimism despite broader economic concerns.
Investors appear buoyed by expectations of softer monetary policy in 2024 and resilient corporate earnings, driving a broad-based recovery. Technology and energy sectors led the charge, with tech giants like Apple and Microsoft contributing significantly to the Nasdaq’s rise. Analysts note that while the gains offer a festive mood to close the year, low volumes can exacerbate volatility, requiring caution in interpreting the strength of the rally.
