Mumbai, Dec. 26 -- The Dow advanced 288.75 points (0.6%) to 48,731.16, the Nasdaq rose 51.46 points (0.2%) to 23,613.31 and the S&P 500 climbed 22.26 points (0.3%) to 6,932.05.

Wall Street's recent strength reflected sustained upward momentum, with Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management, noting that "the path of least resistance is higher until the end of the year." Trading volumes were relatively light as many investors were away for the Christmas holidays, and U.S. markets were set to close early on Christmas Eve and remain shut on Christmas Day.

On the economic front, the Labor Department reported that first-time claims for unemployment benefits fell more than expected to 214,000 in the week ended D...