(Updates to market close)
Clearwater Analytics up after $8.4 billion go-private deal
Ellison offers $40.4 billion guarantee to back Paramount’s Warner Bros bid
VIX hits lowest in a year
By Chuck Mikolajczak
NEW YORK, Dec 22 (Reuters) - U.S. stocks closed higher to kick off the holiday-shortened trading week, buoyed partly by a continued rebound by technology stocks in a broad advance that saw gains among almost all of the 11 S&amp;P 500 sectors. The bounce in tech names began late last week and was driven by Micron Technology’s (MU.O) blowout forecasts and a cooler-than-expected inflation report, which has left the S&amp;P 500 and Dow less than 1% from their record closing levels set on December 11.
Nvidia (NVDA.O) shares rose and provided the biggest lift to the benchmark S&amp;P 500. Reuters reported the company has told Chinese clients it aims to start shipping its second-most powerful AI chips to China before the Lunar New Year holiday in mid-February.
Micron climbed while most other chipmakers also advanced.
“I don’t necessarily think it’s going to go much higher; it’s going to continue to churn,” said Ken Polcari, partner and chief market strategist at Slatestone Wealth in Jupiter, Florida.
“Today we’re trading higher, but I wouldn’t be surprised if we back off again and then we just rally again right into about where we are.”
According to preliminary data, the S&amp;P 500 (.SPX) gained 43.45 points, or 0.64%, to end at 6,877.95 points, while the Nasdaq Composite (.IXIC) rose 121.21 points, or 0.52%, to 23,428.83. The Dow Jones Industrial Average (.DJI) rose 222.65 points, or 0.46%, to 48,357.54. December has historically been a strong period for stock markets. Since 1950, the Santa Claus rally has been reflected by the S&amp;P 500 rising by an average of 1.3% over the last five trading days of the year and the first two trading days in January, according to the Stock Trader’s Almanac.
This year, that period starts on Wednesday and runs through January 5.
Optimism about AI, signs of a resilient U.S. economy, and expectations for monetary policy easing have outweighed concerns about U.S. tariffs, helping to put the three main U.S. indexes on course for their third consecutive year of gains. The S&amp;P 500 is up 17% on the year.
Most of the 11 S&amp;P sectors traded higher, with financials (.SPSY) , materials (.SPLRCM) and energy (.SPNY) among the best performers as commodity prices jumped. The tech sector (.SPLRCT) also gained.
<h3>THIN TRADING AHEAD OF HOLIDAYS</h3>
Wall Street’s fear gauge, the CBOE volatility index (.VIX) , hit its lowest level since December 16, 2024.
Trading volumes were light and were likely to thin out further as the holiday approaches. U.S. stock markets will close at 1 p.m. ET (1800 GMT) on Wednesday and shut on Thursday for Christmas.
However, economic data, including the preliminary reading of third-quarter GDP, December consumer confidence data, and weekly jobless claims, are scheduled for release this week, offering insights about the health of the U.S. economy as well as hints about the monetary policy path.
“Tomorrow’s GDP number is going to be the last real piece of economic data that anyone really cares about,” said Polcari. Among other movers, Tesla (TSLA.O) gained to touch an intraday record high after CEO Elon Musk’s 2018 pay package was restored by the Delaware Supreme Court. Warner Bros Discovery (WBD.O) rose after Oracle co-founder Larry Ellison agreed to provide a personal guarantee of $40.4 billion of the equity financing for Paramount Skydance’s (PSKY.O) offer to acquire the company. Paramount also gained.
Clearwater Analytics Holdings (CWAN.N) rallied after a group of private equity firms led by Permira and Warburg Pincus clinched a deal to acquire the investment and accounting software maker for about $8.4 billion, including debt.
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World stocks in 2025
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U.S. stocks in 2025
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NVDA

U.S. stocks closed higher, driven by tech sector gains and Micron's strong forecasts. The S&P 500, Nasdaq, and Dow Jones all rose, with Nvidia and Micron leading the tech rally. The CBOE volatility index hit a yearly low, indicating reduced market fear. Trading volumes were light ahead of the holidays, with upcoming economic data releases expected to provide further insights. Clearwater Analytics surged after an $8.4 billion acquisition deal, while Warner Bros Discovery rose on a $40.4 billion financing guarantee by Larry Ellison.

- U.S. stocks closed higher, with gains across nearly all S&P 500 sectors, driven by a rebound in technology stocks following strong forecasts from Micron Technology and a favorable inflation report.  
- The S&P 500 rose 0.64% to 6,877.95 points, while increased optimism about AI and a resilient economy, along with expectations for monetary policy easing, have positioned indexes for continued gains in December.  
- Notably, Clearwater Analytics surged after a significant acquisition deal, and Warner Bros Discovery benefited from Ellison's substantial financial backing for its Paramount acquisition attempt.

US STOCKS-Wall Street advances with broad gains, tech gains continue