Asian markets showed slight declines on Wednesday, December 25, 2024, as global trading activity remained muted due to Christmas closures in most parts of the world. Among the few open markets, Tokyo and Shanghai registered minor losses, reflecting a quiet trading environment.
Key Highlights from the Stock Market
Asian Market Updates
- Tokyo (Nikkei 225 Index): Edged 0.1% lower, closing at 38,997.02.
- Shanghai Composite Index: Dropped 0.2%, ending at 3,387.41.
Oil Prices
- U.S. Crude Oil: Gained $0.93, trading at $70.17 per barrel.
- Brent Crude: Rose slightly by $0.06, priced at $73.23 per barrel.
Currency Movements
- USD to JPY: Increased to 157.37 yen from 157.11 yen.
- EUR to USD: Strengthened to $1.0431 from $1.0397.
U.S. Market Overview
Despite the global slowdown, U.S. markets showed strength in a shortened holiday trading session on Tuesday. Gains in Big Tech stocks propelled the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite higher:
- S&P 500: Up 1.1%.
- Dow Jones Industrial Average: Gained 0.9%.
- Nasdaq Composite: Climbed 1.3%.
Top Performers on Wall Street
- Tesla: Led gains with a 7.4% jump, the highest among S&P 500 stocks.
- Broadcom: Rose by 3.2%.
- Apple: Increased 1.1%.
- Amazon: Closed 1.8% higher.
- Super Micro Computer: Surged 6%.
Sector Movements
- Healthcare sector saw significant activity:
- NeueHealth: Skyrocketed by 74.9% after announcing its privatization in a $1.3 billion deal.
- American Airlines: Rebounded to close with a 0.6% gain following a brief grounding of flights due to technical issues.
“Santa Rally” and Year-End Trends
The U.S. markets are experiencing the seasonal “Santa rally,” characterized by positive momentum in the last five trading days of the year and the first two of the new year. Historically, this period has delivered an average return of 1.3% since 1950.
Despite minor pullbacks earlier in December, the S&P 500 is up 26.6% year-to-date, with 57 record highs recorded in 2024.
Broader Economic Concerns
The market’s optimism has been tempered by concerns over:
- Rising inflation.
- Increased government debt.
- Potential global trade disruptions due to tariff policies.
Conclusion
While the U.S. markets showed resilience, the quiet trading environment in Asia highlights the global impact of Christmas holiday closures. As the year comes to a close, investor focus remains on economic policy changes and their implications for 2025. The upcoming U.S. unemployment benefits report on Thursday could further influence market sentiment.
Click here to know more.
