The S&P 500 and the Nasdaq Composite rose on Monday in holiday-thinned trading after a stopgap government funding bill averted a US government shutdown, aided by gains by many of the so-called Magnificent Seven tech stocks.

With megacap stocks having outsized influence on markets, their performance during a week in which many investors take time off will be even more pronounced.

Meta, Nvidia and Tesla were all trading more than 2.5% higher, with Google parent Alphabet and Amazon also in positive territory.

Should the gains of the benchmark indexes hold, Monday’s session would mark the third straight increase for the Nasdaq Composite and a second advance in three sessions for the S&P 500. Stocks fell last Wednesday in a selloff triggered by the US Federal Reserve signalling a slower pace of rate cuts next year.

After a solid run since the November presidential election, Wall Street’s rally hit a bump this month, especially after the US Federal Reserve forecast just two 25-basis-point rate reductions for 2025 — down from its September view of four cuts — and raised its annual inflation outlook.

A cooler-than-expected inflation report on Friday helped US stocks recoup some losses. However, overall market sentiment was still cautious, said Thierry Wizman, strategist at Macquarie.

Money markets expect roughly two 25-bps reductions in 2025, which would bring the benchmark rate to a range of 3.75% to 4.0%, from a range of about 3.50% to 3.75% two weeks ago.

“It’s a Monday with very few catalysts to drive (broad market) sentiment, and we’re going to have low volume, likely volatile trading as we work our way out of this year,” said Art Hogan, chief market strategist at B. Riley Wealth.

Trading volumes are expected to thin, with US stock markets closing early on Tuesday and shut for Christmas on Wednesday.

The United States Congress passed spending legislation early on Saturday, minutes after the funding’s expiration, which could have disrupted everything from law enforcement to national parks ahead of the busy Christmas travel season.