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Wall Street closed higher on Tuesday for the fourth consecutive day supported by the strong momentum of artificial intelligence (AI) trade. Economic data released yesterday were mixed. All three major stock indexes ended in positive territory.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.2% to close at 48,442.41 after a choppy session. Notably, 18 components of the 30-stock index ended in positive territory, 10 finished in negative territory and two remained unchanged. At intraday low, the blue-chip index was down 108.37 points.
The tech-heavy Nasdaq Composite finished at 23,561.84, rising 0.6% or 133.02 points on the strong performance of AI bigwigs. The major gainer of the tech-laden index was Marvell Technology Inc. (MRVL - Free Report) . The stock price of the AI semiconductor giant was up 3.4%. Marvell Technology currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 gained 0.4% to finish at 6,909.79, marking a new all-time closing high. Eight out of 11 broad-sectors of the broad-market index ended in positive territory while three ended in negative territory. The Financials Select Sector SPDR (XLF) rose 0.9%. On the other hand, the Consumer Staples Select Sector SPDR (XLP) slipped 1.1%.
The fear gauge, the CBOE Volatility Index (VIX) was down 0.6% to 14. A total of 14.01 billion shares were traded on Tuesday, lower than the last 20-session average of 16.67 billion. Decliners outnumbered advancers on the NYSE by a 1.02-to-1 ratio. On the Nasdaq, a 1.6-to-1 ratio favored declining issues.
AI Trade Flourishing
The AI saga, supported by the massive growth of cloud computing and data centers, is yet to fully unfold. This space remains rock solid supported by an extremely bullish demand scenario. The demand for data center capacity surged to manage and store the vast amount of cloud computing-based data.
Four of the “magnificent 7” stocks have decided to invest a massive $380 billion in 2025 as capital expenditure for AI-infrastructure development. This marks a significant 54% year-over-year increase in capital spending on the AI ecosystem. Moreover, these companies have also said that AI capex is likely to increase handsomely in 2026.
Economic Data
The Department of Commerce reported that the U.S. GDP growth rate for third-quarter 2025 jumped unexpectedly to 4.3% from 3.8% in the previous quarter. The consensus estimate was 3.2%. The personal consumption expenditures (PCE) price index — the favorite inflation gauge of the Fed — increased 2.8% in the third quarter compared with 2.1% in the previous quarter. Core PCE (excluding volatile food and energy items) price index increased 2.9% compared with 2.6% in the prior quarter.
The Federal Reserve reported that industrial production rose 0.2% in November. Sequentially, manufacturing remained flat while both mining and utilities output gained. Capacity utilization was 76 for November, unchanged from October.
The Conference Board reported that the consumer confidence index for December came in at 89.1, missing the Zacks Consensus Estimate of 92.5. The index for November was revised upward to 92.9 from 88.7 reported earlier.
The Present Situation Index — based on consumers’ assessment of current business and labor market conditions — fell to 116.8 in December from 126.3 in November. The Expectations Index — based on consumers’ short-term outlook for income, business, and labor market conditions — stayed at 70.7, unchanged sequentially.
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Stock Market News for Dec 24, 2025
Wall Street closed higher on Tuesday for the fourth consecutive day supported by the strong momentum of artificial intelligence (AI) trade. Economic data released yesterday were mixed. All three major stock indexes ended in positive territory.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.2% to close at 48,442.41 after a choppy session. Notably, 18 components of the 30-stock index ended in positive territory, 10 finished in negative territory and two remained unchanged. At intraday low, the blue-chip index was down 108.37 points.
The tech-heavy Nasdaq Composite finished at 23,561.84, rising 0.6% or 133.02 points on the strong performance of AI bigwigs. The major gainer of the tech-laden index was Marvell Technology Inc. (MRVL - Free Report) . The stock price of the AI semiconductor giant was up 3.4%. Marvell Technology currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 gained 0.4% to finish at 6,909.79, marking a new all-time closing high. Eight out of 11 broad-sectors of the broad-market index ended in positive territory while three ended in negative territory. The Financials Select Sector SPDR (XLF) rose 0.9%. On the other hand, the Consumer Staples Select Sector SPDR (XLP) slipped 1.1%.
The fear gauge, the CBOE Volatility Index (VIX) was down 0.6% to 14. A total of 14.01 billion shares were traded on Tuesday, lower than the last 20-session average of 16.67 billion. Decliners outnumbered advancers on the NYSE by a 1.02-to-1 ratio. On the Nasdaq, a 1.6-to-1 ratio favored declining issues.
AI Trade Flourishing
The AI saga, supported by the massive growth of cloud computing and data centers, is yet to fully unfold. This space remains rock solid supported by an extremely bullish demand scenario. The demand for data center capacity surged to manage and store the vast amount of cloud computing-based data.
Four of the “magnificent 7” stocks have decided to invest a massive $380 billion in 2025 as capital expenditure for AI-infrastructure development. This marks a significant 54% year-over-year increase in capital spending on the AI ecosystem. Moreover, these companies have also said that AI capex is likely to increase handsomely in 2026.
Economic Data
The Department of Commerce reported that the U.S. GDP growth rate for third-quarter 2025 jumped unexpectedly to 4.3% from 3.8% in the previous quarter. The consensus estimate was 3.2%. The personal consumption expenditures (PCE) price index — the favorite inflation gauge of the Fed — increased 2.8% in the third quarter compared with 2.1% in the previous quarter. Core PCE (excluding volatile food and energy items) price index increased 2.9% compared with 2.6% in the prior quarter.
The Federal Reserve reported that industrial production rose 0.2% in November. Sequentially, manufacturing remained flat while both mining and utilities output gained. Capacity utilization was 76 for November, unchanged from October.
The Conference Board reported that the consumer confidence index for December came in at 89.1, missing the Zacks Consensus Estimate of 92.5. The index for November was revised upward to 92.9 from 88.7 reported earlier.
The Present Situation Index — based on consumers’ assessment of current business and labor market conditions — fell to 116.8 in December from 126.3 in November. The Expectations Index — based on consumers’ short-term outlook for income, business, and labor market conditions — stayed at 70.7, unchanged sequentially.