Kevin O'Leary, Chairman of O'Leary Venture, discusses key market players and shares his excitement about the economy in 2024.
On the Tuesday after the Christmas weekend, stocks rallied and the S&P 500 neared an all-time high.
The recent gains have been widespread, with advancers outnumbering decliners nearly 3 to 1 on the New York Stock Exchange. The S&P 500, which is on its longest winning streak since 2017, rose nearly 0.5% and closed slightly below its all-time high reached almost two years ago. The Dow Jones Industrial Average rose 0.4%, while the Nasdaq Composite ended 0.5% higher.
Overall, the S&P 500 rose 20.12 points to 4,774.75. The Dow rose 159.36 points to 37,545.33 and the Nasdaq gained 81.60 points to 15,074.57.
Technology and industrial stocks accounted for a large share of these increases. Intel rose more than 5%, posting the biggest gain among S&P 500 stocks, while Caterpillar rose 1.8%.
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Traders work on the floor of the New York Stock Exchange (NYSE) on the first day since the Christmas holiday on December 26, 2023 in New York City. (Spencer Platt/Getty Images/Getty Images)
Energy stocks rose as the price of U.S. crude oil rose 2.7%. Hess closed 1.4% higher. Solid gains in smaller company stocks also helped lift the market, sending the Russell 2000 index up 1.2%.
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Some stocks rose sharply on corporate deal news. Drugmaker Bristol Myers Squibb said Tuesday it would acquire RayzeBio in a $4.1 billion deal, just days after buying Karuna Therapeutics for $14 billion. Bristol Myers shares fell 1.6% while RayzeBio doubled to $61.40, close to the $62.50 each stock would fetch if acquired.
Shares of HollySys Automation Technologies rose 5.2% after the company received an updated takeover offer from a consortium led by Dazheng Group Acquisition.
People walk past the New York Stock Exchange on Wednesday, June 29, 2022, in New York. (AP Photo/Julia Nikhinson / AP Newsroom)
Treasury yields were mixed. The yield on the 10-year government bond remained stable at 3.90%.
With less than a week to go before 2024 begins, the S&P 500 is up more than 24% this year, while the Nasdaq has gained 44%.
Investors are encouraged by falling inflation and a stronger-than-expected economy.
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Traders still largely expect the Federal Reserve to cut its key interest rate by at least 1.50 percentage points by the end of next year, according to data from CME Group. The federal funds rate is currently in a range of 5.25% to 5.50%, the highest level in more than two decades.
The Associated Press contributed to this report.