To The Moon

Overview

Global markets showed mixed performance on December 26, 2024, as holiday sentiment began to wane. While the Dow Jones continued its upward streak, other major indices, including the S&P 500 and Nasdaq, struggled to maintain momentum. Asia saw positive gains, especially in Japan, driven by bullish sentiment in retail and tourism sectors, while European markets remained closed for the Boxing Day holiday.

US Markets: Dow Extends Gains, S&P Falters

The US markets saw a mixed day. The Dow Jones Industrial Average $DJIA(.DJI)$  rose by 28.77 points (+0.1%) to close at 43,325.80, marking its fifth consecutive day of gains. Meanwhile, the S&P 500 $S&P 500(.SPX)$  dipped slightly, losing 2.45 points (-0.04%) to settle at 6,037.59. Tech giant Apple $Apple(AAPL)$  reached a record high, rising 0.3% and inching closer to a USD 4 trillion market valuation, helping to offset broader market weakness.

Europe: Holiday Pause

European stock markets were closed for the Boxing Day holiday, leaving no trading activity or updates from major indices like the FTSE 100, DAX, or CAC 40.

Asia: Japan Leads Regional Gains

Asian markets ended mostly higher. Japan’s Nikkei 225 surged 1.1%, fueled by strong gains in retail and tourism stocks following the government’s decision to ease visa requirements for Chinese tourists. The Shanghai Composite inched up by 0.1%, reflecting subdued but positive sentiment. Markets in Hong Kong, Australia, and Indonesia were closed for the holiday.

Outlook and Insights

US Markets: The Dow's continued upward momentum signals resilience, but subdued performances in the S&P 500 and Nasdaq suggest that the holiday rally may be losing steam. Investors should watch upcoming macroeconomic data and earnings reports for direction as 2024 concludes.

Asian Markets: Japan’s easing of visa rules for Chinese tourists may provide sustained tailwinds for retail and travel stocks in the near term. Chinese markets are stabilizing, though broader growth concerns persist.

European Markets: As markets reopen post-holiday, focus will shift to economic indicators and ECB commentary on inflation and monetary policy in early 2025.

Conclusion

While the Dow extended its gains, broader US markets showed signs of fatigue, reflecting a mixed close to the day. Asia’s positive momentum, led by Japan, signals regional opportunities, while Europe’s markets await a fresh start post-holiday. Investors should remain cautious, focusing on macroeconomic developments and corporate performance as year-end volatility unfolds.