On December 22, 2025, US stock markets experienced a positive rally, kicking off a holiday-shortened trading week with increased optimism among investors. The S&P 500 climbed by approximately 0.6%, while the Dow Jones Industrial Average rose by 0.5%. The tech-heavy Nasdaq Composite also showed strong performance, adding about 0.5% to close positively for the third consecutive day.
The markets exhibit a sentiment of anticipation for a potential year-end rally, commonly referred to as the 'Santa Claus rally,' during a time when trading volumes tend to be lighter due to the upcoming holiday.
The Russell 2000 index led gains among the major averages, with sectors like technology, healthcare, and industrials driving growth. Investors remain focused on the tech sector, particularly after a rally in stocks like Tesla (TSLA), which surged close to $500 per share following positive legal news regarding CEO Elon Musk's compensation package.
Notably, Oracle (ORCL) and Nvidia (NVDA) continued their upward trajectory, riding the waves of renewed enthusiasm in AI-related investments.
Gold and silver prices soared to record highs amid rising geopolitical tensions, particularly relating to the US blockade of Venezuelan oil exports. Gold climbed above the previous record set in October, while silver approached $70 an ounce, driven by fears stemming from international conflicts and continued speculation regarding US interest rate cuts in 2026.
Tomorrow, key economic indicators will be released, including an initial look at third-quarter GDP and updates on the Personal Consumption Expenditures (PCE) price index for the months of July, August, and September.
Looking ahead, traders are keenly awaiting the upcoming economic data, with expectations that insights into inflation trends will influence Federal Reserve policy. According to UBS strategists, while there is debate about a potential bubble in the AI sector, they continue to recommend investing in US equities, particularly in technology and healthcare segments.
Ulrike Hoffmann-Baurchardi, CIO Americas at UBS, stated, "We maintain our Attractive rating on US equities and find compelling opportunities in tech and other sectors that have lagged behind."
As the markets closed, the S&P 500 stood at 6,878.49, marking a gain of 0.64%. The Dow closed at 48,362.68, up 0.47%, with the Nasdaq reaching 23,428.83, reflecting a 0.52% increase. The positive trajectory demonstrates resilience as investors approach year-end trading with renewed confidence amidst broader economic implications.
The anticipated early market close on December 24 (Christmas Eve) and a complete closure on December 25 (Christmas Day) means that this week’s trading is indeed limited. This is positioning the markets for a potentially bullish finish to 2025.