US OPEN: Semiconductor stocks drive Christmas Eve gains on Wall Street

• Green Christmas Eve on Wall Street
• Semiconductors' rally continues
• American Airlines trade flat despite unexpected groudning

After promising futures trading, Wall Street opened quite bullish on Christmas Eve. Nasdaq stays at the top of the game with around 0,8% gain right at the start of the session, followed by the S&P500 (+0,45%) and Dow Jones (+0,33%). Russell 2000 started the session in the red, but has just broken even with 0,03% gain.

Today’s session is dominated by semiconductor stocks, which are rallying in response to a probe launched yesterday by the Biden administration against Chinese chipmakers. According to a White House statement, the investigation aims to examine 'acts, policies, and practices’ related to the production of silicon carbide substrates and other wafers used in semiconductor fabrication. Officials justify the move by citing concerns that China 'routinely engages in non-market policies and practices, as well as industrial targeting.' However, the investigation could also be seen as a political reaction to China’s recent antitrust probe into Nvidia.

Philadelphia Stock Exchange Semiconductor Index is up 0,3% today, side by side with the gains among major hardware manufacturers (Nvidia: +1%, AMD: +0,9%, Broadcom: 1,35%). On the red side, however, we have TSM (-0,85%) and Qualcomm (-0,1%)

Volatility currently observed on Wall Street. Source: xStation5

US100 (D1)

The Nasdaq 100 contract is well back on track with its bullish rally, having recovered almost ¾ of the sell-off motivated by the hawkish Fed pivot last week. In case of the bearish reversal, the immediate support is around the 21400 mark, i.e. the reopening after the post-FOMC slump, whilst a more general line of defense remains at 21250. The key resistance to beat is naturally the most recent ATH around 22111. RSI is hovering around 60, leaving plenty of space for growth, while shrinking MACD histogram might suggest a slowdown of the momentum and potential consolidation.

Source: xStation5

Corporate news:

• American Airline (AAL.PL): the carrier’s stock fell as much as 5,5% in the premarket trading following the grounding of all the flights nationwide. On one of the most hectic travel days of the year, the company faced technical issues affecting all of its flights. The groundstop was lifted by the Federal Aviation Administration around 12:50 GMT. Despite the troubles in the premarket trading, the stock is currently up 0,05%.
• Arcadium Lithium (ALTM.US): the chemical lithium producer trades 4,5% higher following the shareholder approval regarding the acquisition by Rio Tinto. The deal was first announced on October 9th and is expected to have closed by the mid-2025.
• NeueHealth: the healthcare provider soars 66% upon the decision to acquire and take the company private by the New Entreprise Associates and consortium of investors. Shareholders have been promised $7.33 per share in cash, constituting a 70% premium over yesterday's closing price.