Stock market today: Wall Street rallies ahead of Christmas

Technology stocks led a broad rally on Wall Street Tuesday during a holiday-shortened trading session ahead of Christmas.

The S&P 500 rose 1.1% for its third-straight gain. The Dow Jones Industrial Average added 0.9%, and the tech-heavy Nasdaq composite climbed 1.3%.

While Big Tech companies, including Apple, Amazon and chip company Broadcom helped push the market higher, the gains were widespread.

Advancers outnumbered decliners by more than 3-to-1 on the New York Stock Exchange.

Broadcom rose 3.2%, Apple gained 1.1% and Amazon closed 1.8% higher. Super Micro Computer climbed 6%.

Tesla jumped 7.4% for the biggest gains among S&P 500 stocks.

American Airlines shook off an early loss and ended with a 0.6% gain after the airline briefly grounded flights nationwide due to a technical issue.

Elsewhere in the market, U.S. Steel rose 1.9% a day after an influential government panel failed to reach consensus on the possible national security risks of the nearly $15 billion proposed sale to Nippon Steel of Japan.

NeueHealth surged 74.9% after the health care company agreed to be taken private in a deal valued at roughly $1.3 billion.

All told, the S&P 500 rose 65.97 points to 6,040.04. The Dow added 390.08 points to 43,297.03, and the Nasdaq rose 266.24 points to 20,031.13.

Treasury yields held steady in the bond market. The yield on the 10-year Treasury was little changed at 4.59%.

European markets closed mostly higher. Markets in Asia mostly gained ground.

Tuesday’s U.S. market rally comes as the stock market enters what’s historically been a very cheerful season. The last five trading days of each year, plus the first two in the new year, have brought an average gain of 1.3% since 1950. The so-called “Santa rally” also correlates closely with positive returns in January and the upcoming year.

So far this month, the U.S. stock market has lost some of its gains since President-elect Donald Trump’s win on Election Day, which raised hopes for faster economic growth and more lax regulations that would boost corporate profits. Worries have risen that Trump’s preference for tariffs and other policies could lead to higher inflation, a bigger U.S. government debt and difficulties for global trade.

Even so, the stock market remains on pace to deliver strong returns for 2024. The benchmark S&P 500 is up 26.6% so far this year and remains within roughly 1% of the all-time high it set earlier this month — its latest of 57 record highs this year.

U.S. markets will be closed Wednesday for Christmas.

Wall Street has several economic reports to look forward to this week, including a weekly update on unemployment benefits on Thursday.

Lights marking the entrance to a subway station frame the New York Stock Exchange in New York's Financial District on Monday, Dec. 23, 2024. (AP Photo/Peter Morgan)

A currency trader reads documents at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Tuesday, Dec. 24, 2024. (AP Photo/Ahn Young-joon)

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Tuesday, Dec. 24, 2024. (AP Photo/Ahn Young-joon)

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Tuesday, Dec. 24, 2024. (AP Photo/Ahn Young-joon)

FILE - Signs mark the intersection of Wall and South Streets in New York's Financial District on Nov. 26, 2024. (AP Photo/Peter Morgan, File)

WASHINGTON (AP) — American Airlines briefly grounded flights nationwide Tuesday because of a technical problem just as the Christmas travel season kicked into overdrive and winter weather threatened more potential problems for those planning to fly or drive.

Government regulators cleared American flights to get airborne about an hour after the Federal Aviation Administration ordered a national ground stop for the airline. The order, which prevented planes from taking off, was issued at the airline's request.

The airline said in an email that the problem was caused by an issue with vendor technology that maintains its flight operating system.

Dennis Tajer, a spokesperson for the Allied Pilots Association, a union representing American Airlines pilots, said the airline told pilots at 7 a.m. Eastern time that there was an outage affecting the system known as FOS. It handles different types of airline operations, including dispatch, flight planning, passenger boarding, as well as an airplane's weight and balance data, he said.

Some components of FOS have gone down in the past, but a systemwide outage is rare, Tajer said.

Hours after the ground stop was lifted, Tajer said the union had not heard about any “chaos out there beyond just the normal heavy travel day.” He said officials were watching for any cascading effects, such as staffing problems.

The flight-tracking site FlightAware reported that 3,267 flights entering or leaving the U.S., or serving domestic destinations, were delayed Tuesday, with 44 flights canceled. It did not show any flights from American Airlines.

Aviation analytics company Cirium said Dallas-Fort Worth and Charlotte, North Carolina, saw the greatest number of delays. Washington, New York, Chicago and Miami experienced considerably fewer delays.

Significant rain and snow was expected in the Pacific Northwest at least into Christmas Day. Showers and thunderstorms were developing in the South. Freezing rain was reported in the Mid-Atlantic region near Baltimore and Washington, and snow was falling in New York.

Because the holiday travel period lasts weeks, airports and airlines typically have smaller peak days than they do during the rush around Thanksgiving, but the grind of one hectic day followed by another takes a toll on flight crews. And any hiccups — a winter storm or a computer outage — can snowball into massive disruptions.

That is how Southwest Airlines stranded 2 million travelers in December 2022, and Delta Air Lines suffered a smaller but significant meltdown after a worldwide technology outage in July caused by a faulty software update from cybersecurity company CrowdStrike.

Many flights during the holidays are sold out, which makes cancellations even more disruptive than during slower periods. That is especially true for smaller budget airlines that have fewer flights and fewer options for rebooking passengers. Only the largest airlines, including American, Delta and United, have “interline agreements” that let them put stranded customers on another carrier’s flights.

This will be the first holiday season since a Transportation Department rule took effect that requires airlines to give customers an automatic cash refund for a canceled or significantly delayed flight. Most air travelers were already eligible for refunds, but they often had to request them.

Passengers still can ask to get rebooked, which is often a better option than a refund during peak travel periods. That’s because finding a last-minute flight on another airline tends to be expensive.

An American spokesperson said Tuesday was not a peak travel day for the airline — with about 2,000 fewer flights than the busiest days — so the airline had somewhat of a buffer to manage the delays.

Cirium said American had 3,320 domestic flights scheduled for Tuesday, and 581 international departures from or returning to the U.S. from abroad.

The groundings happened as millions of travelers were expected to fly over the next 10 days. The Transportation Security Administration expects to screen 40 million passengers through Jan. 2.

Airlines expect to have their busiest days on Thursday, Friday and Sunday.

Many flights during the holidays are sold out, which makes cancellations more disruptive than during slower periods. Even with just a brief outage, the cancellations have a cascading effect that can take days to clear up.

About 90% of Americans traveling far from home over the holidays will be in cars, according to AAA.

“Airline travel is just really high right now, but most people do drive to their destinations, and that is true for every holiday,” AAA spokesperson Aixa Diaz said.

Gasoline prices are similar to last year. The nationwide average Thursday was $3.04 a gallon, down from $3.13 a year ago, according to AAA. Charging an electric vehicle averages just under 35 cents per per kilowatt hour, but varies by state.

Transportation-data firm INRIX says travel times on the nation’s highways could be up to 30% longer than normal over the holidays, with Sunday expected to see the heaviest traffic. Boston, New York City, Seattle and Washington are the metropolitan areas primed for the greatest delays, according to the company.

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Associated Press writers David Koenig, Mae Anderson, Mike Pesoli and Haleluya Hadero contributed to this report.

An employee wearing a Santa Claus hat walks past boards showing flight delays, in the American Airlines terminal at Miami International Airport, on Christmas Eve, Tuesday, Dec. 24, 2024, in Miami. (AP Photo/Rebecca Blackwell)

An employee wearing a Santa Claus hat walks past boards showing flight delays, in the American Airlines terminal at Miami International Airport, on Christmas Eve, Tuesday, Dec. 24, 2024, in Miami. (AP Photo/Rebecca Blackwell)

Cesar Davila, who works for the American Airlines partner providing wheelchair assistance, wears a Christmas tree hat and festive glasses as he waits for a traveler to help inside the American Airlines terminal at Miami International Airport, on Christmas Eve, Tuesday, Dec. 24, 2024, in Miami. (AP Photo/Rebecca Blackwell)

Cesar Davila, who works for the American Airlines partner providing wheelchair assistance, wears a Christmas tree hat and festive glasses as he pushes a traveler through the American Airlines terminal at Miami International Airport, on Christmas Eve, Tuesday, Dec. 24, 2024, in Miami. (AP Photo/Rebecca Blackwell)

Two travelers nap near the Alaska Airlines ticketing area at the Los Angeles International Airport in Los Angeles, Tuesday, Dec. 24, 2024. (AP Photo/Jae C. Hong)

Travelers wait in line for security checks at the Los Angeles International Airport in Los Angeles, Tuesday, Dec. 24, 2024. (AP Photo/Jae C. Hong)

Marie Digna, traveling to Grand Rapids, Mich., enters security with her two sons, Lucian, right, and Samson, at Los Angeles International Airport on Tuesday, Dec. 24, 2024. (AP Photo/Jae C. Hong)

Travelers wait in line for security checks at the Los Angeles International Airport in Los Angeles, Tuesday, Dec. 24, 2024. (AP Photo/Jae C. Hong)

American Airlines employees, some wearing Santa Claus hats, check in travelers in the American terminal at Miami International Airport, on Christmas Eve, Tuesday, Dec. 24, 2024, in Miami. (AP Photo/Rebecca Blackwell)

An American Airlines employee wearing a Santa Claus hat walks through the American terminal at Miami International Airport, on Christmas Eve, Tuesday, Dec. 24, 2024, in Miami. (AP Photo/Rebecca Blackwell)

An American Airlines employee wearing a Santa Claus hat looks toward quiet check-in counters in the American terminal at Miami International Airport, on Christmas Eve, Tuesday, Dec. 24, 2024, in Miami. (AP Photo/Rebecca Blackwell)

FILE - American Airlines planes wait at gates at Phoenix Sky Harbor International Airport Friday, July 19, 2024, in Phoenix. (AP Photo/Ross D. Franklin, File)