U.S. stocks traded higher on Monday as investors leaned into the year-end rally during a holiday-shortened trading week, with strength in technology and merger-driven names lifting sentiment. Lighter volumes typical of late December trading helped amplify gains as investors positioned for a potential Santa Claus rally.
The tech-heavy Nasdaq Composite led early advances, rising about 0.5%, while the S&P 500 gained roughly 0.6% and the Dow Jones Industrial Average added close to 0.5%. Markets remained supported by resilient risk appetite, easing inflation expectations, and selective buying across AI, biotech, and deal-related stocks.
Market Movers:
- ABIVAX Société Anonyme (ABVX) +16%: Shares jumped after renewed takeover speculation surfaced, following reports that Eli Lilly has held discussions with French officials regarding a potential acquisition. The news revived optimism around strategic interest in the biotech’s late-stage inflammatory disease pipeline.
- UniFirst (UNF) +16%: The uniform provider surged after Cintas made an unsolicited all-cash offer valued at $275 per share, representing a significant premium to recent trading levels. Cintas said it would fund the deal with existing cash and credit facilities, reigniting acquisition talks that stalled earlier this year.
- Rocket Lab (RKLB) +6%: Shares climbed after the company completed its 21st successful Electron launch of the year, setting a new annual record for the small-launch provider. The mission reinforced Rocket Lab’s growing role in commercial satellite deployment and its expanding backlog heading into 2026.
- Oracle (ORCL) +3%: Oracle advanced after Wells Fargo reiterated an Overweight rating, arguing the market continues to undervalue the company’s AI-driven cloud infrastructure opportunity. Analysts said Oracle could benefit from a renewed wave of enterprise AI adoption despite broader tech volatility.
- Bitfarms (BITF) +3%: Crypto-related stocks rebounded as Bitcoin stabilized near $90,000 following a sharp December pullback. The modest recovery lifted sentiment across miners and crypto-linked equities after weeks of selling pressure.
- Fluor Corporation (FLR) +2%: The engineering firm gained after announcing the sale of its stake in a Chinese fabrication yard, a move expected to generate roughly $122 million in proceeds. The divestment aligns with Fluor’s focus on capital discipline and portfolio optimization.
- Honeywell (HON) -3%: Shares fell after the industrial conglomerate cut its fourth-quarter outlook and said it would classify its Advanced Materials unit as discontinued operations. The company also disclosed a sizable one-time litigation charge, adding to near-term earnings pressure.
Tech Momentum and Deal Activity Support Risk Appetite
Technology stocks continued to recover from recent volatility as investors reassessed fears of an AI investment slowdown. Renewed confidence in enterprise demand, combined with strong execution from select hardware and infrastructure names, helped stabilize the sector and draw buyers back into large-cap tech. At the same time, merger-and-acquisition headlines added fuel to the rally, particularly in healthcare and industrials. Premium-driven takeout speculation and unsolicited bids reinforced the view that corporate balance sheets remain strong and that strategic dealmaking could accelerate in 2026.
Commodities and Crypto Add to the Risk-On Tone
Elsewhere, commodities and digital assets provided additional support to market sentiment. Gold prices hovered near record highs amid lingering geopolitical tensions, while crude oil edged higher on supply concerns tied to developments in Venezuela. In crypto markets, Bitcoin’s rebound helped ease concerns of deeper downside after a volatile month, lifting related equities and restoring some risk appetite in the digital asset space as the year winds down.
Looking Ahead
With only a handful of trading sessions left in 2025, investors are watching whether seasonal tailwinds can carry stocks to fresh highs. Thin liquidity could magnify moves in either direction, keeping volatility elevated despite the broadly constructive tone. Markets will also monitor any delayed economic updates tied to the earlier government shutdown, along with positioning ahead of the new year as expectations around 2026 interest-rate cuts, tech spending, and deal activity continue to take shape.