Tech Stocks Lead Holiday Gains Amid Market Caution

The S&P 500 and Nasdaq Composite saw gains in thin trading after the U.S. averted a government shutdown. Tech giants such as Meta and Nvidia boosted the market, although broader sentiment remains cautious due to Federal Reserve's restricted rate cut predictions and upcoming year-end trading volumes.

In a session marked by holiday-thinned trading, the S&P 500 and Nasdaq Composite climbed on Monday, buoyed by the performance of leading tech stocks. This follows legislative action that helped avert a U.S. government shutdown, adding a layer of stability to the markets.

Major tech players, including Meta Platforms, Nvidia, and Tesla, traded higher, contributing to a positive outlook despite the cautious sentiment spurred by the Federal Reserve's lowered expectations for future interest rate cuts. These gains are particularly noteworthy, given that trading usually slows during the holiday season, bringing volatility.

While stocks struggled earlier in the month due to revised economic forecasts, a cooler-than-expected inflation report helped regain some momentum. However, experts like Art Hogan predict continued low trading volumes as the year draws to a close, with potential volatility anticipated through the holiday week.

(With inputs from agencies.)