Wall Street embraced the holiday spirit as the annual Santa Rally propelled markets higher during a shortened trading session ahead of the Christmas holiday. Major indices closed the day in positive territory, with the S&P 500 rising 1%, continuing its three-day winning streak. The Dow Jones Industrial Average gained 0.9%, while the Nasdaq 100 outperformed with a 1.3% increase, nearly erasing losses from the previous week.

Consumer discretionary stocks led the charge, maintaining their position as the best-performing sector this year. Tesla Inc. surged 7.35%, marking its strongest single-day performance since November and boosting investor sentiment. Retail giant Walmart gained 2.4%, Starbucks added 2.8%, and Netflix climbed 2.5%, rounding out a robust day for key players in the S&P 500.

In the broader market, the U.S. dollar index edged higher, reflecting its dominance over the euro near one-year highs. Treasury yields held steady, with the 10-year benchmark yield at 4.6%, its highest level since May. Commodities also benefited from the optimistic mood, with gold inching up 0.4% and oil prices advancing 0.7%.

The cryptocurrency market saw a resurgence of risk appetite as Bitcoin soared 4%, breaking past the $98,000 milestone. This rally spilled over into crypto-related stocks, with notable gains for Microstrategy, MARA Digital Holdings, and Coinbase Global. After weeks of volatility, the crypto market appeared buoyed by renewed investor confidence.

As Wall Street wrapped up a festive trading session, market participants remained optimistic about sustained gains heading into the final days of the year. With indices climbing, consumer stocks performing well, and Bitcoin setting new records, the Santa Rally delivered much-needed cheer to a volatile December market.