U.S. equity markets commenced the holiday-shortened week on a positive note this Monday, December 22, 2025, with major indexes posting modest gains in early trading. The upward momentum is largely attributed to a continued resurgence in artificial intelligence (AI) related stocks and a generally optimistic sentiment heading into the Christmas holiday. Investors are also closely monitoring key economic data releases scheduled for the week, which could provide further clues on the Federal Reserve's future policy decisions.
Major Market Indexes Open Higher
The benchmark S&P 500 (SPX) rose 0.4% in early trading, positioning itself just below the all-time high achieved earlier this month. The tech-heavy Nasdaq Composite (IXIC) also climbed 0.4%, while the blue-chip Dow Jones Industrial Average (DJIA) advanced 170 points, or 0.4%, at the open. This positive start follows a mixed performance last week, where the S&P 500 (SPX) and Nasdaq Composite (IXIC) managed to end in the green, gaining 0.1% and 0.5% respectively, while the Dow (DJIA) concluded the week with a 0.7% loss. Futures for the S&P 500 (SPX) were up 0.4%, Nasdaq 100 futures gained 0.6%, and Dow Jones Industrial Average (DJIA) futures were flat to slightly up by 0.1% before the market opened, signaling the cautious optimism.
Tech Sector Continues to Drive Gains
The artificial intelligence (AI) sector remains a significant catalyst for market performance, with several key players extending their recent rallies. Oracle (ORCL) saw its shares climb 6.6% last Friday following news that TikTok's U.S. operations would be sold to a new joint venture, which includes Oracle, private equity firm Silver Lake, and Abu Dhabi-based MGX. Each of these entities is set to receive a 15% stake in the popular social video platform.
Chipmaking giant Nvidia (NVDA) also experienced a notable rise, gaining 3.9% last Friday. This surge came on reports that the Trump administration is reportedly considering allowing Nvidia to sell its advanced H200 AI chips to certain "approved customers" in China. Nvidia (NVDA) continued its upward trajectory, rising 1.5% in early Monday trading. Another significant gainer in the semiconductor space was Micron Technology (MU), which jumped 7% last Friday after delivering robust fiscal first-quarter 2026 earnings results and providing an even stronger outlook for the second quarter of fiscal 2026. Micron (MU) shares were up 3.5% in early Monday trading. Additionally, Advanced Micro Devices (AMD) also saw a 1% increase in early Monday trading.
Key Corporate Earnings and News
While this week is expected to be quiet on the major earnings front due to the upcoming holidays, a few companies recently reported their quarterly results. Carnival Corp. & plc (CCL) shares climbed an impressive 9.8% after the cruise line operator reported fourth-quarter fiscal 2025 adjusted earnings per share that comfortably beat analysts' estimates. FedEx Corp. (FDX) also saw its shares rise by 0.6% after the logistics giant announced second-quarter fiscal 2026 adjusted earnings that surpassed consensus expectations. Similarly, HEICO Corp. (HEI) surged 5.8% following its strong fourth-quarter fiscal 2025 adjusted earnings per share, which outpaced forecasts.
Conversely, Conagra Brands Inc. (CAG) experienced a 2.5% decline in its stock price after the food company reported second-quarter fiscal 2026 adjusted revenues that missed analysts' projections. In other corporate news, ride-hailing giants Uber (UBER) and Lyft (LYFT) both rose approximately 1.4% after announcing plans to introduce robotaxi services to London next year through separate partnerships with Chinese tech firm Baidu. Meanwhile, Honeywell (HON) shares slipped over 1% before the bell, as the conglomerate anticipates a one-time charge related to a legal dispute with private jet operator Flexjet.
Economic Data and Upcoming Market Events
The economic calendar for this holiday-shortened week will be closely watched by investors. Today, Monday, December 22, 2025, saw the release of the Core PCE Price Index (MoM and YoY) for October. Looking ahead, Tuesday, December 23, will bring the first of three estimates for third-quarter Gross Domestic Product (GDP) and durable goods orders. Other key indicators expected this week include corporate profits, industrial production figures for October and November, and various consumer confidence reports. The minutes from the latest Federal Open Market Committee (FOMC) meeting will also be released, offering insights into policymakers' views on potential future interest rate adjustments.
It's important for investors to note the altered trading schedule this week. U.S. stock markets will close early on Wednesday, December 24, at 1:00 PM ET for Christmas Eve and will remain closed all day on Thursday, December 25, in observance of Christmas. Markets are scheduled to reopen for normal trading hours on Friday, December 26. This period often sees thinner trading volumes, which can sometimes lead to increased volatility. Many market participants are also looking forward to the potential "Santa Claus rally," a historical trend of market gains during the last five trading days of December and the first two of January.
Commodities in Focus
Beyond equities, the commodities market also saw significant movement. Gold and silver prices touched new record highs on Monday. Gold futures surged 1.6% to approximately $4,465 an ounce, while silver futures set a new record, surpassing $69.50 per ounce. This climb is largely attributed to rising geopolitical risks and expectations for further interest rate cuts. Additionally, oil prices jumped more than 2%, with West Texas Intermediate (WTI) futures reaching $57.90 a barrel, following reports of the U.S. Coast Guard pursuing a sanctioned oil tanker in the Caribbean.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.