Wall Street Extends Gains Ahead of the Holidays
Shares of Oracle Corporation climbed 3.3% after reports that TikTok agreed to sell its U.S. operations to a new joint venture.
Quick overview
- U.S. equities closed higher as expectations grow for another Federal Reserve rate cut, despite thin holiday trading.
- Major indexes like the Dow, S&P 500, and Nasdaq all posted gains, aiming for a strong year-end performance.
- Economic data, particularly a soft consumer price index, has reinforced market momentum and lowered Treasury yields.
- Larry Ellison's personal guarantee of $40.4 billion for Paramount's bid for Warner Bros. Discovery intensifies the competition with Netflix.
As expectations grow for another Federal Reserve rate cut, U.S. equities closed higher again, albeit on thin holiday trading.
Major Wall Street indexes finished in positive territory on Monday, extending their recent gains. Markets are aiming for a strong year-end performance, even as trading volumes remain subdued during the holiday-shortened week.
U.S. markets will close early on Wednesday and remain shut on Thursday for Christmas—factors that typically reduce trading volumes and can amplify price swings.
Against this backdrop, the Dow Jones Industrial Average rose 0.5% to 48,362.68 points, the S&P 500 gained 0.6% to 6,872.78, and the Nasdaq Composite advanced 0.5% to 23,428.83.
Economic data in focus for Fed clues
Last week’s U.S. inflation data further supported the market’s overall momentum. A surprisingly soft reading of the consumer price index (CPI) reinforced expectations that the Federal Reserve could move more quickly to cut interest rates in 2026. The data pushed U.S. Treasury yields lower, providing an additional tailwind for equities.
“If the unemployment rate continues to rise, we believe the Fed will respond by lowering its policy rate. Otherwise, Fed cuts in 2026 are likely to come later, only once it becomes clear that inflationary pressures are easing,” said Michael Gapen, economist at Morgan Stanley, in a note.
Investors are also closely watching developments related to the Fed’s leadership transition for further policy signals. With the term of current Fed Chair Jerome Powell set to end in May and U.S. President Donald Trump reportedly interviewing several potential successors, markets are parsing any comments related to interest rates and monetary strategy.
Wall Street movers
Technology stocks drew particular attention after chipmaker Micron Technology jumped 4.1% last week following a strong earnings outlook, reigniting enthusiasm for AI-linked stocks.
The forecast helped restore confidence in a sector that had recently faced pressure from elevated valuations, heavy capital requirements, and concerns over whether demand growth would justify higher prices.
Shares of Oracle Corporation climbed 3.3% after reports that TikTok agreed to sell its U.S. operations to a new joint venture, with Oracle expected to play a key role in providing cloud and data-infrastructure services.
The news lifted Oracle and supported gains across large-cap technology stocks, reflecting continued confidence that demand for advanced chips remains strong, even as valuation concerns persist.
Larry Ellison vs. Netflix: the battle intensifies
Oracle co-founder Larry Ellison stepped in to personally guarantee $40.4 billion in equity financing for Paramount Skydance’s hostile bid for Warner Bros. Discovery, a move designed to undermine the key defense used by Warner’s board to support a rival deal with Netflix.
The amendment, disclosed in a regulatory filing on Monday, directly addresses Warner Bros. Discovery’s claims last week that Paramount’s financing was “illusory.” By providing an irrevocable personal guarantee, Ellison—the world’s fifth-richest individual—has effectively backed the bid with his $246 billion fortune, supporting an offer led by his son, David Ellison, CEO of Paramount.
The battle for Warner Bros. Discovery has become a high-stakes showdown between traditional Hollywood and the streaming frontier. Paramount has maintained its $30-per-share all-cash offer, valuing WBD at approximately $108.4 billion including debt. This contrasts with the $82.7 billion cash-and-stock deal WBD recently reached with Netflix, which includes separating the company’s studio and streaming assets from its cable networks.
Given the hostile nature of the bid, Paramount is appealing directly to WBD shareholders, bypassing a board that has so far remained aligned with Netflix’s proposal. Paramount has extended its tender offer deadline to January 21, 2026.
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