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Holiday Markets Lifted By Wall Street Rally Amid Thin Trading

Image: Michael Nagle | Bloomberg | Getty Images
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Holiday trading in global markets kicked off with optimism, fueled by a strong finish on Wall Street. Here’s a look at the major market moves and headlines that shaped the day.

Mega Merger in the Auto Industry

Japanese automakers Nissan and Honda have begun official merger talks, with negotiations set to conclude by June 2025. Honda’s stock soared 13.4% on Tuesday, marking its best single-day performance since October 2008, following the announcement of a major share buyback program. The company plans to repurchase 24% of its issued shares by December 23, 2025.

Taiwan Leads Asia-Pacific Markets

Taiwan’s Taiex emerged as the best-performing stock market in the Asia-Pacific region in 2024, posting a stellar 28.85% gain. The market’s tech-heavy focus drove its exceptional performance, with Taiwan Semiconductor Manufacturing Company (TSMC) surging 82.12% and Foxconn (Hon Hai Precision Industry) climbing 77.51% during the year.

Mixed Performances in Asia-Pacific

Asian markets reflected a mixed sentiment on Tuesday:

  • Japan’s Nikkei 225 fell 0.4%, even as Honda shares surged.
  • Hong Kong’s Hang Seng Index climbed more than 1%, continuing its upward trajectory.

Meanwhile, the New York Stock Exchange prepared for an early close on Tuesday ahead of Christmas Eve, following a robust Monday session.

UK Economy Falters

In a sobering update, the UK Office for National Statistics revised its third-quarter GDP figures, showing the economy failed to grow during the period. Earlier estimates suggested a 0.1% expansion, but the update underscores the country’s economic struggles, compounded by a 0.1% contraction in October.

Buffett’s Cash Pile Hits a Record

Warren Buffett’s Berkshire Hathaway is sitting on a historic $325 billion in cash, representing 30% of the company’s total assets — its highest proportion in 34 years.

  • This year, Buffett sold significant stakes in Apple and Bank of America.
  • Analysts speculate the legendary investor may be preparing for a major acquisition or hedging against market uncertainties.

Wall Street: A Positive Start to the Week

U.S. markets began the holiday week on a strong note:

  • The S&P 500 rose 0.73%.
  • The Dow Jones Industrial Average gained 0.16%, recovering from earlier losses.
  • The Nasdaq Composite added 0.98%, driven by strong performances from tech giants like Nvidia, Tesla, and Meta Platforms.

Bitcoin Volatility Hits MicroStrategy Shares

Shares of MicroStrategy, often seen as a proxy for bitcoin, tumbled 8.8% on Monday. The drop followed bitcoin’s price decline to below $93,000, underscoring the company’s heavy reliance on the cryptocurrency’s valuation.

Despite the setback, MicroStrategy remains one of the best-performing U.S. tech stocks, with shares skyrocketing 426% this year. The company’s bitcoin holdings, amassed since 2020, now account for approximately $42 billion, driving its market capitalization to $82 billion from just $1.1 billion when it started investing in cryptocurrency.

Investors are reminded that MicroStrategy’s fortunes remain closely tied to bitcoin’s volatile price swings.

With U.S. markets closing early on Tuesday and remaining shut on Wednesday for Christmas, trading volumes are expected to remain light. However, low activity doesn’t necessarily translate to small market moves.

Craig Johnson, Chief Market Technician at Piper Sandler, expressed optimism in a note:

“With the market’s primary uptrends still intact, we are not giving up on the potential for a Santa Claus rally to come to Broad & Wall this year.”

Investors, buoyed by the S&P 500’s 25.25% year-to-date gain, may find extra cheer under the tree this festive season.

Global markets are entering the holiday stretch with cautious optimism. While Wall Street’s rally offers some cheer, lingering economic uncertainties and bitcoin volatility remind investors to tread carefully as they look to close out the year on a high note.