The U.S. stock market is closed today, Thursday, December 25, 2025, in observance of the Christmas Day holiday, with trading on both the New York Stock Exchange (NYSE) and Nasdaq suspended for the entire day. However, the preceding trading session on Wednesday, December 24, 2025 (Christmas Eve), saw the Dow Jones Industrial Average (^DJI) advance 288.75 points (0.5961%) to 48,731.16, reaching a new record high in a shortened trading day. This upward movement occurred amidst light trading volumes as markets closed early for the holiday.
The main narrative driving the market's positive performance on Christmas Eve was a combination of robust economic data and ongoing investor optimism. A key catalyst was the surprisingly strong U.S. Gross Domestic Product (GDP) report, which showed the economy grew at an annualized rate of 4.3% in the third quarter, significantly surpassing expectations and marking the most rapid expansion in two years. This data reinforced confidence in a resilient economy despite elevated interest rates. Additionally, the market is currently experiencing the "Santa Claus rally," a historical phenomenon where stocks tend to rise during the final trading days of December and the first few sessions of the new year. Continued optimism surrounding the potential of Artificial Intelligence (AI) to boost corporate profits also contributed to the bullish sentiment, alongside expectations that the Federal Reserve will implement interest rate cuts in 2026.
Among the Dow-related stocks, Nike (NKE) was the biggest gainer, surging 4.64%. This significant jump was reportedly fueled by news that Apple (AAPL) CEO Tim Cook doubled his stake in the athleisure wear brand. Other notable gainers included Merck (MRK), up 1.34%, and Disney (DIS), which rose 1.11%. Conversely, some stocks experienced minor pullbacks. The biggest decliner from the provided data was Nvidia (NVDA), which was down 0.61%. Cisco (CSCO) also saw a slight dip of -0.18%, and Honeywell (HON) edged down -0.06%.
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.