The U.S. stock market observes a quiet Christmas Day on Thursday, December 25, 2025, with all major exchanges, including the New York Stock Exchange (NYSE) and Nasdaq, closed for the holiday. This pause follows a robust, holiday-shortened trading session on Wednesday, December 24, where major indexes continued their upward trajectory, reaching new record highs. Investors are now looking ahead to the reopening of markets on Friday, December 26, and the economic landscape that awaits in the final days of 2025 and early 2026.
Market Performance Leading into the Holiday
On Wednesday, December 24, Wall Street saw a broad rally, pushing the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite to fresh records. The S&P 500 advanced 0.3% (22.26 points) to close at 6,932.05. The Dow Jones Industrial Average climbed 0.6% (288.75 points), ending the session at 48,731.16. Meanwhile, the technology-heavy Nasdaq Composite edged up 0.2% (51.46 points) to reach 23,613.31. The Russell 2000 index of smaller companies also saw gains, rising 0.3% to 2,548.08. These gains underscore a year of significant growth, with the S&P 500 up 17.8%, the Dow up 14.5%, and the Nasdaq up 22.3% for the year. The positive sentiment has been largely fueled by optimism surrounding artificial intelligence (AI) advancements and expectations regarding the Federal Reserve's interest rate policy.
Upcoming Market Events and Economic Outlook
The Federal Reserve's monetary policy remains a central focus for investors. In its December 2025 meeting, the Fed implemented its third consecutive 25-basis-point rate cut, bringing the federal funds rate to a range of 3.5%–3.75%, the lowest level since 2022. This move came amidst signs of a cooling labor market, though policymakers were reportedly divided on the extent of future cuts. Looking into 2026, major Wall Street firms anticipate further easing, with forecasts ranging from 50 to 75 basis points of additional rate cuts, primarily in March and June. However, the Fed's future decisions will heavily depend on incoming economic data, particularly inflation and employment figures.
Several key economic data releases are on the horizon that could influence market sentiment and the Fed's trajectory. The highly anticipated December 2025 Consumer Price Index (CPI) report is scheduled for release on January 13, 2026, offering crucial insights into year-end price pressures. Prior data showed annual inflation rising to 3.0% in September, with shelter costs and used vehicles being significant drivers. Additionally, the Job Openings and Labor Turnover Survey (JOLTS) for November 2025 and State Employment and Unemployment data for November 2025 are set for January 7, 2026. Updates on Gross Domestic Product (GDP) for the third and fourth quarters of 2025 are also expected in January and February 2026. The Atlanta Fed's GDPNow model estimated real GDP growth for the fourth quarter of 2025 at 3.0% as of December 23.
Major Stock News and Corporate Developments
The shortened trading week before Christmas brought several notable corporate announcements and stock movements:
- Dynavax Technologies (DVAX) experienced a significant surge, soaring 38.2% after French pharmaceutical giant Sanofi (SNY) announced its intention to acquire the vaccine maker in a deal valued at $2.2 billion.
- Nike (NKE) shares gained 4.6% following news that Apple (AAPL) CEO Tim Cook purchased approximately $3 million worth of Nike shares. Cook serves as the lead independent director on Nike's board.
- Intel (INTC) shares dipped 0.5% after reports indicated that AI chip leader Nvidia (NVDA) had ceased testing Intel's 18A chip manufacturing process. This news highlights the intense competition and strategic shifts within the semiconductor industry.
- Novo Nordisk (NVO) climbed 7.3% after the U.S. FDA approved its GLP-1 pill for the treatment of overweight or obesity, expanding its presence in the weight-loss market.
- Huntington Ingalls Industries (HII) saw its shares rise 0.3% amid reports of the U.S. government's plans for a new class of battleships.
- ServiceNow (NOW) shares fell 1.5% after the company announced its decision to acquire cybersecurity startup Armis for $7.75 billion in cash.
- ZIM Integrated Shipping Services (ZIM) surged 5.8% on news that its board is evaluating several potential acquisitions, signaling potential expansion or consolidation in the shipping sector.
As the markets remain closed for Christmas, investors will be closely monitoring global developments and preparing for a potentially active end to the year and the start of 2026, with the Federal Reserve's future rate decisions and key economic indicators poised to shape market sentiment.
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.