U.S. equity markets extended their winning streak to a fifth consecutive session on Wednesday, December 24, 2025, with the S&P 500 and Dow Jones Industrial Average both closing at new record highs in a holiday-shortened Christmas Eve trading session. Trading concluded early at 1:00 PM ET, as investors began winding down for the Christmas holiday, which will see markets closed on Thursday. Despite the abbreviated hours and typically lighter trading volumes, a prevailing "Santa Claus rally" sentiment contributed to the upward momentum across major indexes.
Major Market Indexes Performance
The afternoon trading activity saw all three major U.S. stock indexes finish in positive territory. The benchmark S&P 500 Index climbed 0.3% to close at 6,932.05, marking its 39th record close of 2025 and a second consecutive all-time high. The Dow Jones Industrial Average (DJIA) advanced 0.6%, adding 288.75 points to settle at 48,731.16, also achieving a new record closing high. The tech-heavy Nasdaq Composite Index edged up 0.2%, rising 51.46 points to 23,613.31, extending its own five-day winning streak. This broad market strength comes as investors continue to weigh the direction of the U.S. economy and the Federal Reserve's interest rate policy.
Trading volumes were notably subdued throughout the session, a common occurrence during holiday periods, which can sometimes lead to increased volatility. The CBOE Volatility Index (VIX), often referred to as the market's "fear gauge," was down 0.6% to 14, indicating a relatively calm market environment.
Sectoral Highlights and Key Movers
Sector performance was mixed but leaned positive on this shortened trading day. The Financials Select Sector SPDR (XLF) saw a rise of 0.9%, while the Consumer Staples Select Sector SPDR (XLP) slipped 1.1%. Housing and banking stocks generally showed strength.
In a significant development, gold and silver futures continued their impressive run, setting new all-time highs for the third consecutive session. Gold reached $4,555 an ounce, and silver hit $72.75 an ounce, reflecting ongoing investor interest in precious metals. The 10-year Treasury yield, a key indicator for interest rates, dipped slightly to 4.13% from Tuesday's close of 4.17%. Bitcoin was trading around $87,400, experiencing a slight dip from earlier highs.
Among individual stocks making headlines:
- Nike (NKE) emerged as a top performer in both the S&P 500 and Dow, with its stock surging 4.6%. This rise followed a regulatory filing revealing that Apple (AAPL) CEO Tim Cook had purchased nearly $3 million worth of Nike shares on Monday.
- AI chip giant Nvidia (NVDA) saw its shares end down 0.3% after a report indicated the company had halted testing an Intel (INTC) production process for advanced semiconductors. Intel shares also experienced a slight decline of 0.5%.
- Novo Nordisk (NVO) climbed 7.3% following the U.S. FDA's approval of its GLP-1 pill for the treatment of overweight or obesity, signaling significant potential in the weight-loss drug market.
- Huntington Ingalls Industries (HII) shares rose 0.3% on news of the U.S. government's plans for a new "Trump class" of battleships, expected to be larger, faster, and more powerful than previous designs.
- ServiceNow (NOW) saw its shares fall 1.5% after the company announced its decision to acquire cybersecurity startup Armis for $7.75 billion in cash.
- ZIM Integrated Shipping Services Ltd. (ZIM) surged 5.8% amid reports that its board is evaluating several potential acquisitions.
- BP (BP) announced an agreement to sell a majority controlling interest in Castrol, its global lubricants business, to Stonepeak in a transaction valuing Castrol at approximately $10.1 billion. BP will retain a 35% minority interest.
Economic Data and Upcoming Market Events
Recent economic data has presented a mixed picture for investors. The U.S. GDP growth rate for the third quarter of 2025 unexpectedly jumped to 4.3% from 3.8% in the previous quarter, surpassing the consensus estimate of 3.2%. However, the personal consumption expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, increased to 2.8% in the third quarter, up from 2.1% in the prior quarter, suggesting persistent inflation. Consumer confidence for December came in at 89.1, missing the Zacks Consensus Estimate of 92.5, and remaining nearly 30% below December 2024 levels due to ongoing "pocketbook issues." Weekly jobless claims fell last week, indicating a still-healthy labor market.
Looking ahead, investors will closely monitor several key events in early 2026 that could influence market sentiment and Federal Reserve policy. The minutes from the latest Federal Open Market Committee (FOMC) meeting will be released, providing further insight into policymakers' discussions regarding future interest rate adjustments. While the Fed lowered the federal funds rate for the third consecutive time in December to 3.5-3.75%, views remain mixed among FOMC members on the trajectory of rates in 2026, balancing concerns over a weak labor market and sticky inflation.
The new year will also bring a flurry of global economic data, including worldwide manufacturing and services PMI surveys, particularly focusing on mainland China, and crucial U.S. non-farm payrolls data. Additionally, flash eurozone inflation data for December will be released, with expectations for it to remain near the European Central Bank's 2% target. These upcoming reports will be critical in shaping market expectations for economic growth and monetary policy in the new year.
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.