Dow Jones gains nearly 400 points in shortened pre-Christmas session

U.S. stocks closed higher on Tuesday in a shortened trading session ahead of the Christmas holiday. Stocks were buoyed by positive sentiment and the seasonal optimism that typically characterizes this time of year.

The Dow Jones Industrial Average rose 0.90%, or 390 points, to settle at 43,297 points.

The S&P 500 index also advanced 1.10%, or 66 points, to 6,040 points, and Nasdaq added 1.35%, or 266 points, to close at 20,031.

The period spanning the final five trading sessions of the year and the first two in January is known as the "Santa Claus Rally." Since 1950, the S&P 500 has delivered an average return of 1.3% during this time, outperforming the typical seven-session market return of 0.3%, according to LPL Research.

As for European markets, the STOXX Europe 600 inched up 0.2% to 504 points, with the mining and energy sectors in the lead.

The British FTSE index added 0.40% to 8,137 points, while the French CAC 40 index rose 0.15% to 7,282 points. Meanwhile, the German market was closed for a public holiday.

The Nikkei index fell 0.30% to 39,036 points, while the broader Topix index remained stable at 2,727 points.

Brent crude futures for February 2025 delivery rose 1.3%, or $0.95, to $73.58 per barrel.

Meanwhile, the US West Texas Intermediate (WTI) crude futures for February 2025 delivery increased 1.25%, or $0.86, to $70.10 per barrel.

Regarding gold, futures prices for February delivery were up 0.3%, or $73, to $2,635.50 per ounce.