The S&P 500 commenced the holiday-shortened trading week with a 0.7% gain on December 23, 2024, driven by strong performance in the communication and technology sectors. This article delves into the key market movers and notable stock performances of the day.
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Broadcom (AVGO) and Advanced Micro Devices (AMD) led the charge, surging 5.5% and 4.5% respectively, following optimistic analyst reports. UBS raised its price target for Broadcom, citing increased projections for the company’s artificial intelligence revenue. Rosenblatt analysts identified AMD as a top pick for the first half of 2025, anticipating robust growth in the server and data center market segments.
A U.S. government probe into legacy Chinese semiconductors used in American products further bolstered chip stocks. Microchip Technology (MCHP) and Monolithic Power Systems (MPWR) each saw gains exceeding 4%. Industry giants Nvidia (NVDA), Intel (INTC), and Qualcomm (QCOM) also experienced positive momentum. This investigation suggests potential shifts in the semiconductor landscape, favoring U.S.-based companies.
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Conversely, Carnival Corp. (CCL) experienced a 4% decline, reversing recent gains spurred by positive quarterly earnings and a promising 2025 booking outlook. Bernstein analysts maintained a “market perform” rating on Carnival, highlighting stronger growth prospects for competitor Royal Caribbean (RCL). Norwegian Cruise Line Holdings (NCLH) also saw a 2.9% drop. This suggests a potential realignment within the cruise industry.
Paramount Global (PARA) faced a 2.9% decline after agreeing to pay fines for Emergency Alert System violations. While a petition was filed to challenge Paramount’s merger with Skydance Media, speculation persists that a relationship between Paramount’s leadership and the incoming presidential administration could positively influence the deal’s outcome. This highlights the interplay between regulatory actions and political influence within the media sector.
Workday (WDAY), in its S&P 500 debut, fell 2.8% despite earlier gains following its inclusion announcement. This volatility underscores the complexities of market adjustments and investor sentiment surrounding newly indexed companies.
ResMed (RMD) experienced a 2.6% dip after the FDA approved Eli Lilly’s (LLY) weight-loss drug, Zepbound, for treating obstructive sleep apnea in obese adults. This approval raised concerns about potential impacts on ResMed’s CPAP device sales. Eli Lilly, on the other hand, enjoyed a 3.7% surge. This development illustrates the dynamic nature of the pharmaceutical industry and the impact of competitive innovations.
In conclusion, December 23rd showcased a mixed performance across various sectors, with technology and communication stocks leading the S&P 500’s upward trajectory. Chip stocks benefited from positive analyst sentiment and a government probe, while companies like Carnival and ResMed faced headwinds due to competitive pressures and regulatory developments. These market movements provide valuable insights into the evolving investment landscape.
