Nasdaq Index: Tesla, Meta, and Nvidia Rally While MicroStrategy Slides on Bitcoin Exposure

What’s Driving Stocks at the Mid-Session

U.S. stocks are showing mixed performance at mid-session as traders digest economic data and sector shifts during light holiday trading. The Dow Jones Industrial Average is under pressure, while the Nasdaq Composite leads gains, driven by tech sector strength. The S&P 500 hovers slightly higher, reflecting a market split between advancing tech and lagging defensive sectors.

Investor focus remains on the Federal Reserve’s revised outlook for 2025, where expectations for rate cuts have been scaled back. The Fed now anticipates two 25-basis-point cuts next year, down from four. Meanwhile, the recent government funding bill has eased some concerns, ensuring market stability heading into the new year.

How Are the Major Indices Performing?

The Dow is down 100 points, or 0.3%, as blue-chip stocks face selling pressure. Investors appear cautious about economic growth prospects, with little appetite for defensive sectors.

In contrast, the S&P 500 is up 0.3%, finding support from technology and communication services stocks. The Nasdaq Composite leads, rising 0.6%, lifted by Tesla, Meta, and Nvidia. Nvidia is up 1.6%, while Meta has gained 1.4%. Apple continues its climb toward a $4 trillion market valuation.

Which Sectors Are Driving the Market?

Tech Leads the Charge
Technology is the best-performing sector, up 0.82%. Broadcom is the standout, surging 4% and continuing its rally. Qualcomm also climbed 1.7% after resolving a legal dispute over processor licensing.

Communication Services Gains Ground
The communication services sector is also performing well, rising 1.06%, reflecting strong performances from large-cap tech firms.

Consumer Staples and Energy Weigh on Markets
On the downside, consumer staples have dropped 1.28%, with Walmart sliding 3.3% following legal allegations related to delivery fees. Energy is down 0.15%, while materials have declined 0.65%, adding to the defensive sector weakness.

Healthcare Holds Steady
Healthcare is posting marginal gains of 0.11%. Eli Lilly rose 1.7% after the FDA approved its weight-loss treatment targeting sleep apnea. However, competitors ResMed and Inspire Medical have each fallen by about 4%.

Notable Movers and Key Stocks to Watch

Honda and Nissan Stir M&A Interest
Honda shares have jumped over 11% on merger discussions with Nissan, signaling possible consolidation in the auto sector.

Xerox Rises on Acquisition News
Xerox is up 7% after announcing its $1.5 billion acquisition of Lexmark, boosting investor confidence in the company’s growth strategy.

MicroStrategy Slides with Bitcoin Exposure
MicroStrategy is down 5.4%, reflecting volatility tied to its continued Bitcoin purchases. Crypto-exposed equities remain unpredictable as Bitcoin’s price fluctuates.

Economic Data: What’s the Latest Update?

The Conference Board’s consumer confidence index has dropped to 104.7, falling short of expectations. This signals a potential slowdown in consumer sentiment as the year draws to a close.

Durable goods orders fell 1.1% in November, marking the largest decline since June. While economic headwinds are evident, the passage of the government funding bill has prevented further disruption, offering some relief to markets.

Market Forecast: Where Could the Market Be Headed Next?

A potential Santa Claus rally may provide a boost, as historical trends favor late-December market gains. The Nasdaq’s 1.8% rise so far in December highlights tech’s ongoing strength, suggesting the potential for further gains into the new year.

However, with thin trading volumes and early closures on Tuesday, volatility may increase. While a bullish tilt could persist in the short term, broader market hesitation is likely to keep significant breakouts in check. Traders are expected to focus on inflation data and Federal Reserve signals as key drivers heading into January.

More Information in our Economic Calendar.