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Crypto stocks trade higher tracking bitcoin prices

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Indexes up: Dow 0.19%, S&P 500 0.13%, Nasdaq 0.06%

(Updates after markets open)

By Johann M Cherian and Pranav Kashyap

Dec 31 (Reuters) - Wall Street's major indexes opened

higher in the final trading session of 2024, extending a more

than two-year-long bull run fueled by post-pandemic economic

resilience, optimism over lower borrowing costs and a boost from

the AI revolution.

The S&P 500, Dow and Nasdaq are near

record highs and are set for their second consecutive year of

gains.

A nearly 100-basis point cut in interest rates in 2024 by

the Federal Reserve and a rally in technology stocks in

anticipation of boost to corporate profits from artificial

intelligence have catapulted equities to record highs in 2024.

The tech, communications services and

consumer discretionary stocks have advanced more than

30% this year.

Although AI poster-child Nvidia's ( NVDA ) more than 170%

surge this year was smaller compared with last year, the rally

helped the company notch $3 trillion in market value, while

Tesla reclaimed $1 trillion level.

At 09:53 a.m., the Dow Jones Industrial Average rose

79.15 points, or 0.19%, to 42,652.88, the S&P 500 gained

7.91 points, or 0.13%, to 5,914.28 and the Nasdaq Composite

gained 9.12 points, or 0.06%, to 19,497.96.

Nvidia ( NVDA ) was down 0.5%, while the Elon Musk-led automaker

added 1.1%. Moves are expected to be influenced by thin volumes

ahead of New Year's holiday on Wednesday.

A majority of the 11 S&P 500 sectors traded higher, led by

energy stocks on higher crude prices.

Toward the end of the year, risk-taking improved as Donald

Trump's presidential win boosted bets that he would deliver on

his promises to ease regulations, cut taxes and raise tariffs to

help domestic businesses.

His win also powered small-cap stocks. The Russell 2000

clinched a record high and was set for a second straight

year of gains with a nearly 10% increase. Bank shares

are up nearly 35% this year.

However, equities hit a rough patch in December, putting

the S&P 500 on course for its biggest monthly decline since

April, due to higher yields on Treasury notes at a time when

equity valuations are stretched and the Fed is cautious.

The yield on benchmark 10-year note eased to

4.5% as inflationary concerns linked to Trump's policies raises

chances of the Fed moderating its rate cuts in 2025.

"Any further gains in equities are unlikely until there is

more clarity about what the incoming administration's tax and

tariff policies will look like," said Raffi Boyadjian, lead

market analyst at brokerage XM.

"How earnings expectations evolve in the coming months will

also be crucial for Wall Street, particularly for tech and AI

stocks."

Traders expect the first rate cut of 2025 in either March or

May. Meanwhile, Trump's win has invigorated crypto stocks, with

Bitcoin hitting $100,000.

MicroStrategy ( MSTR ) shares have jumped over 300% this

year as it continues buying and holding bitcoin. The stock rose

1.9% on Tuesday, while Coinbase and MARA Holdings ( MARA )

added 0.5% and 0.8%, respectively.

Other areas of the market, however, have witnessed annual

declines, with materials stocks down about 1.7%, hurt

by the economic woes in top metals consumer China.

Advancing issues outnumbered decliners by a 3.51-to-1 ratio

on the NYSE and by a 1.88-to-1 ratio on the Nasdaq.

The S&P 500 posted two new 52-week highs and no new lows,

while the Nasdaq Composite recorded 25 new highs and 15 new

lows.