Wall Street’s main indexes closed higher on Tuesday, with gains in megacap and growth stocks driving benchmarks. The S&P 500 rose 1.10% to 6,040.04 points, the Nasdaq Composite advanced 1.35% to 20,031.13, and the Dow Jones Industrial Average gained 0.91% to 43,297.03.
Megacap technology stocks, led by a 7.4% jump in Tesla shares, propelled the consumer discretionary index 2.6% higher. Chip manufacturers Broadcom, Nvidia, and Arm Holdings also rose, recouping losses suffered in previous days.
Growth names rallied despite elevated U.S. Treasury interest rates, which traditionally hurt growth stocks. However, Charlie Ripley, senior investment strategist for Allianz Investment Management, noted that long-term themes around technology development, including advancements in artificial intelligence, overshadowed near-term moves in Treasuries.
The S&P 500 has scored four straight sessions of gains, with the Dow taking its winning streak to three sessions, marking the first day of the seasonal Santa Claus rally. Stock markets shut at 1:00 p.m. ET on Tuesday and will be closed for Christmas on Wednesday.
Crypto-related stocks traded higher on Tuesday, with Microstrategy, Riot Platforms, and MARA Holdings climbing between 4.7% and 8.1%, as the price of bitcoin advanced. Healthcare provider NeueHealth soared 75% after announcing a $1.3 billion deal to take the company private. American Airlines shares edged up 0.6% after trading lower for much of the session due to a technical issue.