Stocks rallied Tuesday following the Christmas weekend, with the S&P 500 approaching an all-time high.
The latest gains were widespread with advancers outnumbering decliners by nearly 3 to 1 on the New York Stock Exchange. The S&P 500, coming off its longest winning streak since 2017, rose just under 0.5%, finishing slightly below its all-time high set nearly two years ago. The Dow Jones Industrial Average rose 0.4%, while the Nasdaq composite ended 0.5% higher.
All told, the S&P 500 rose 20.12 points to 4,774.75. The Dow gained 159.36 points to 37,545.33, and the Nasdaq added 81.60 points to 15,074.57.
Technology and industrial stocks accounted for a big share of these gains. Intel climbed more than 5% for the biggest gain among S&P 500 stocks, while Caterpillar added 1.8%.
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Energy stocks climbed as the price of U.S. crude oil rose 2.7%. Hess closed 1.4% higher. Solid gains by smaller company stocks also helped lift the market, pushing the Russell 2000 index 1.2% higher.
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Some stocks surged on company deal news. Drugmaker Bristol Myers Squibb said Tuesday that it will 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 that each share will fetch in its acquisition.
Shares in HollySys Automation Technologies jumped 5.2% after the company received an updated buyout offer from a consortium led by Dazheng Group Acquisition.
Treasury yields were mixed. The yield on the 10-year Treasury held steady at 3.90%.
With less than a week to go in 2024, the S&P 500 is now up more than 24% for the year, while the Nasdaq is up 44%.
Investors are encouraged by inflation on the decline and a stronger-than-expected economy.
Traders are still largely betting the Federal Reserve will cut its main 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 sitting within a range of 5.25% to 5.50% at its highest level in more than two decades.
The Associated Press contributed to this report.
