Stocks rose on Monday to start a holiday-shortened trading week as the continuous strength in technology names helped the broader market.

The S&P 500 gained 0.73% to 5,974.07. The tech-heavy Nasdaq Composite rose 0.98% to 19,764.89, as Tesla and Meta Platforms added more than 2% and Nvidia climbed more than 3%. The Dow Jones Industrial Average erased earlier losses and ended the day 66.69 points higher, or 0.16%, to 42,906.95.

Trading was thin on Monday and it is expected to remain muted during the week. The New York Stock Exchange closes early Tuesday for Christmas Eve at 1 p.m. ET, and the market is shut on Christmas Day.

Weak economic data seemed to sour the sentiment a bit earlier in the session. The Conference Board's consumer confidence index for December fell to 104.7, its lowest level since September and below a Dow Jones estimate of 113.0. Meanwhile, orders for durable goods — generally big-ticket items such as aircraft, appliances and computers — fell 1.1% in November, the largest month-over-month drop since June. The blue-chip Dow declined more than 300 points at one point Monday after the disappointing data.

The market just came off a roller-coaster ride that saw the blue-chip Dow suffer a 10-day losing streak, its longest since 1974. The Dow tumbled 1,100 points Wednesday after the Federal Reserve signaled fewer rate cuts for 2025 than previously projected. A cooler-than-expected inflation reading at the end of the week helped stocks recoup some of the losses.

Month to date, the 30-stock Dow is down 4.5% in December, while the S&P 500 is off nearly 1%. The tech-heavy Nasdaq Composite bucked the downtrend, rising 2.8% this month.

Investors have been reassured that federal agencies will stay open into the new year after President Joe Biden signed a funding bill Saturday that averted a government shutdown. The bill funds federal agencies at current levels for the next three months.

Santa rally?

Some investors were hopeful that a so-called Santa Claus rally may help the market end 2024 on a high note, especially following a tumultuous week. Dating back to 1969, the S&P 500, on average, added 1.3% in the last five trading days of the year and the first two in January, according to the Stock Trader's Almanac. 

The second half of December is also typically the second-strongest period of the year for U.S. equities, and the S&P 500 has been up 83% of the time in December of presidential election years, according to Bank of America.

"With the market's primary uptrends still intact, we are not giving up on the potential for a Santa Claus to come to Broad & Wall this year," Craig Johnson, chief market technician at Piper Sandler, said in a note.

Stocks rise to begin holiday-shortened week

The three major averages closed higher on Monday.

The S&P 500 added 0.73%, ending at 5,974.07. The Nasdaq Composite rose 0.98% to 19,764.89. The Dow Jones Industrial Average advanced 66.69 points, or 0.16%, to 42,906.95.

— Darla Mercado

Thin trading on Monday

With 20 minutes left in the session, about 27.7 million shares of the SPDR S&P 500 ETF Trust (SPY) have changed hands Monday, compared to its 30-day average trading volume of 47 million shares, according to FactSet.

Trading is expected to remain thin this holiday week.

— Yun Li

Tesla among Wall Street’s least favorite S&P 500 stocks for 2025

While Tesla has been on a tear in the wake of President-elect Donald Trump's election win, shares could actually see some pullback in the months ahead.

The carmaker has surged about 67% since Nov. 5 through Friday, and analysts believe the stock could fall more than 43% in 2025.

In a recent note to clients, Barclays analyst Dan Levy said the incoming Trump administration's policy changes will "likely be neutral-to-negative for the Tesla Auto and Energy business."

In addition to Tesla, streaming giant Netflix and chipmaker Broadcom, which topped $1 trillion in market cap for the first time earlier this month, could also see declines in 2025.

CNBC Pro subscribers can read more here.

— Sean Conlon

Walmart shares tumble on CFPB suit over delivery driver pay practices

Walmart shares have been a strong performer this year, but the stock was tumbling on Monday. Shares fell more than 2% after the Consumer Financial Protection Bureau sued the retailer and its partner Branch Messenger over pay practices. The regulator alleges the retail giant forced delivery drivers to use "costly deposit accounts" to collect their pay.

Branch operates a digital payment platform, and the lawsuit claims drivers were forced to use the service, which collected millions in junk fees.

— Christina Cheddar Berk

NYSE decliners outpace advancers by about 3 to 2 in slow trading Monday

Declining stocks are outpacing advancers on the New York Stock Exchange by about 1610 to 1077, with 150 issues unchanged, according to the latest FactSet data. On the Nasdaq, losers are topping winners by 2299 to 1687, with 440 unchanged.

Measured by the percentage of shares traded, declining volume on the NYSE totals some 56% of all shares that have changed hands, while on Nasdaq, advancing volume is topping declining volume 59% to 39%.

New 52-week lows on the NYSE total 116 against just 18 new highs, while on Nasdaq it is 127 lows to 72 highs.

Midday composite volume on the NYSE was just 32% of the past 30 days' average, but more active on Nasdaq, where composite volume reached 52% of the past month's average.

— Scott Schnipper

Semiconductor stocks outperform

Semiconductor names ran circles around the broader market on Monday, helping to explain the Nasdaq Composite's outperformance.

The VanEck Semiconductor ETF (SMH) and iShares Semiconductor ETF (SOXX) each climbed more than 2% in the session. By comparison, the broad S&P 500 ticked up just around 0.2%, while the tech-heavy Nasdaq rose 0.6%.

Notably, Broadcom climbed more than 5%, resuming its December rally. Artificial intelligence darling Nvidia, meanwhile, advanced more than 2%.

— Alex Harring

See the stocks moving midday

These are some of the stocks making notable midday moves on Monday:

• Nordstrom — The department store shares dipped more than 1% after announcing it will go private.
• Honda — Shares surged more than 11% following the announcement of the company entering into merger talks with fellow Japanese automaker Nissan.
• Broadcom — The semiconductor stock advanced 4%, resuming its December rally after a recent pullback. 

Click here for the full list.

— Alex Harring

8 stocks hit new 52-week lows

Eight stocks in the S&P 500 dropped to fresh 52-week lows during Monday's session. They included:

• PepsiCo trading at lows not seen since October 2021
• Constellation Brands trading at lows not seen since May 2023
• Phillips 66 trading at lows not seen since October 2023
• Valero trading at lows not seen since July 2023
• CVS Health trading at lows not seen since August 2012

Conversely, Apple and Palantir scored new all-time highs dating back to their initial public offerings in December 1980 and September 2020, respectively.

— Sean Conlon, Christopher Hayes

Nvidia among Wall Street’s favorite S&P 500 stocks for 2025

Chip giant Nvidia may be poised to see more gains in 2025.

The stock, which has already soared about 175% in 2024, has upside potential of around 30%, according to analysts on Wall Street.

The forecast comes as Cantor Fitzgerald recently reiterated its overweight rating and named it a top pick in the semiconductor space heading into next year.

Other names that also have upside potential of at least 30% next year include energy stock Diamondback Energy and clean energy stock First Solar.

CNBC Pro subscribers can read more here.

— Sean Conlon, Lisa Kailai Han

MicroStrategy shares fall on first day of bitcoin proxy's Nasdaq-100 inclusion

MicroStrategy slid on the stock's first day of inclusion in the Nasdaq-100 index.

Shares of the bitcoin proxy were last lower by more than 5%. Bitcoin itself fell more than 1% to the $93,000 level after rising to a new all-time high above $106,000 last week.

The company sold 1.3 million shares to buy an additional 5,262 bitcoins for about $106,662 per coin, it disclosed in a Dec. 23 filing. The new purchase brings its total bitcoin holdings to 444,262.

— Tanaya Macheel

Small caps struggle

Small-cap stocks took a relatively large leg down as the new trading week kicked off.

The small cap-focused Russell 2000 slid more than 0.7% in morning trading. The broad S&P 500, by comparison, ticked lower by just around 0.2%.

Monday's performance extends the December theme of small caps taking an outsized hit. The Russell 2000 has tumbled more than 8% this month, while the S&P 500 has fallen less than 2% during the same period.

— Alex Harring

Nordstrom shares fall after family agrees to take department store private

Department stores have been in decline for years, but talk of a potential bid has buoyed Nordstrom stock in recent months. That long-anticipated deal was made official Monday with the Nordstrom family and Mexican retailer El Puerto de Liverpool offering shareholders $24.25 per share, or roughly $6.25 billion.

Nordstrom shares fell 1.3% on the news, but the stock is up nearly 33% year to date. That gain sets Nordstrom stock apart from other department stores. Macy's shares are down 19% year to date, while Kohl's stock has sunk more than 50%.

It's worth noting that in 2018, the Nordstrom board rejected the founding family's offer to take the company private, saying the offer was too low. The bid at that time, $50 a share, is more than double the current offer.

— Christina Cheddar Berk

Orders for durable goods fell in November

Orders for durable goods — generally big-ticket items such as aircraft, appliances and computers — fell 1.1% in November, the largest month-over-month drop since June, according to preliminary data from the U.S. Department of Commerce.

This followed a 0.8% increase in October. Transportation equipment, which has fallen three of the last four months, led the decline in November.

— Yun Li

Xerox to acquire Lexmark in $1.5 billion deal, shares rise

Shares of Xerox Holdings rose around 9% in premarket trading Monday following the announcement that it's buying printer maker Lexmark in a deal valued at $1.5 billion.

To help fund the deal, Xerox said, it will cut its dividend in half, trimming its annual payout to 50 cents from $1. The reduced rate will begin in the first quarter. The deal is expected to close in the second half of 2025.

"Our acquisition of Lexmark will bring together two industry-leading companies with shared values, complementary strengths, and a deep commitment to advancing the print industry to create one stronger organization," Xerox CEO Steve Bandrowczak said in a statement. "By combining our capabilities, we will be better positioned to drive long-term profitable growth and serve our clients, furthering our Reinvention."

Shares have spent the year in the red, with the stock sliding more than 54% year to date. In December, shares have also fallen more than 8%.

— Sean Conlon

Honda gains following merger talks announcement

U.S.-listed shares of Honda jumped more than 15% in the premarket on the heels of the company and fellow Japanese automaker Nissan announcing they've officially begun merger talks.

According to Honda CEO Toshihiro Mibe, the merged company has the potential to bring in 30 trillion yen ($191.4 billion) in revenue and more than 3 trillion yen in operating profit. The companies plan to wrap up discussions in June 2025.

Honda shares have had a rough year. Year to date, the stock has fallen more than 22%, drastically underperforming the broader market.

— Sean Conlon, Jenni Reid

See the stocks moving before the bell

These are some of the stocks making moves in Monday's premarket:

• Novo Nordisk — The pharmaceutical stock jumped 4.9%, rebounding from Friday's sell-off on the back of weaker-than-expected drug trial data.
• Xerox — The document services provider added nearly 11% after saying it would acquire printer maker Lexmark.
• Despegar.com — Shares surged 32% after Prosus entered into a definitive agreement to buy the Argentina-based online travel platform.

See the full list here.

— Alex Harring

European shares higher

Markets in Europe saw gains on Monday, with shares erasing earlier losses to trade higher by 9:24 a.m. London time.

The pan-European Stoxx 600 was up 0.2%, with sectors in mixed territory. Investors in the region were making trades ahead of planned market closures for the Christmas holiday later this week.

Read the latest on European markets here.

— Chloe Taylor

December is historically the second-best month for stocks

December is historically the second-best month in a U.S. presidential election year for the Dow Jones Industrial Average and S&P 500, according to the Stock Trader's Almanac. On average, the two indexes gain 1.3% and 0.8% on the month, respectively, during such years. For the Nasdaq Composite, presidential election year Decembers are usually the fifth-best of the year, with the tech-heavy index rising an average 0.9%. 

The bulk of gains in December usually come in the back half of the month, when a Santa Claus rally, and low trading volumes, could give this year's monster run one final push toward the finish line.

— Sarah Min