U.S. stock markets are closed today, Thursday, December 25th, 2025, in observance of the Christmas holiday, providing a pause after a robust, holiday-shortened trading session on Christmas Eve. Markets closed early on Wednesday, December 24th, at 1:00 PM ET, with all major indexes notching gains and the S&P 500 and Dow Jones Industrial Average reaching new record highs. This festive rally has set an optimistic tone as investors look ahead to the final trading days of the year and the start of 2026.
Afternoon Trading Activity and Sector Performance (December 24th)
Wednesday's trading saw a continuation of the "Santa Claus rally," a historically favorable period for equities. The benchmark S&P 500 (SPX) rose 0.3% to close at 6,932.05, marking a new all-time closing high. The Dow Jones Industrial Average (DJI) climbed 0.6%, reaching 48,731.16, also setting a fresh record. The tech-heavy Nasdaq Composite (IXIC) edged up 0.2% to 23,613.31. The Russell 2000 (RUT) index of smaller companies also saw gains, rising 0.3% to 2,548.08.
The broad market strength on Christmas Eve was evident across most sectors. Nearly all eleven S&P sectors closed higher, contributing to the overall upward momentum. The Financials Select Sector SPDR (XLF) notably rose 0.9%, indicating strong performance in the financial sector. Conversely, the Consumer Staples Select Sector SPDR (XLP) slipped 1.1%. Looking at year-to-date performance, technology, communications, industrials, financials, and healthcare sectors are all on track for significant annual gains, buoyed by investor sentiment around artificial intelligence investments, growth prospects, and the Federal Reserve's easing stance. The CBOE Volatility Index (VIX) fell over 3% to its lowest level since last December, reflecting a lack of fear heading into the year-end.
Upcoming Market Events
With the stock market observing the Christmas holiday today, investor attention will quickly shift to the economic calendar and corporate developments in the days following. The earnings calendar for the week of December 22nd to 26th is notably quiet due to the holiday season, with no major companies scheduled to release reports. This seasonal pause allows market participants to prepare for the final stretch of year-end trading.
However, key economic data points will continue to be monitored. Last week's unemployment claims fell, signaling a still-healthy labor market, a factor closely watched by the Federal Reserve. The U.S. Bureau of Economic Analysis (BEA) released its initial estimate for third-quarter 2025 Gross Domestic Product (GDP) on December 23rd, showing an annual growth rate of 4.3%, driven by increases in consumer spending, exports, and government spending. However, the Personal Consumption Expenditures (PCE) price index, a key inflation gauge, ticked up to 2.8% in the same period, suggesting persistent inflation. This mixed economic data presents a tricky balance for the Federal Reserve, with Wall Street anticipating the Fed will likely hold rates steady at their January meeting.
Major Stock News and Developments
Several individual stocks made headlines in the lead-up to the Christmas holiday:
- Nike (NKE) saw its shares jump 4.6% on Wednesday after a regulatory filing revealed that Apple (AAPL) CEO Tim Cook purchased nearly $3 million worth of Nike stock. This significant insider buying provided a boost to the athletic apparel giant, whose shares had seen a decline of approximately 20% this year.
- Dynavax Technologies (DVX) experienced a substantial surge in its stock price after French pharmaceutical company Sanofi (SNY) announced its intent to acquire the vaccine maker.
- Nvidia (NVDA) played a significant role in driving the S&P 500's rally, with its stock popping 3% on Tuesday. However, some reports also indicated that Nvidia's shares ended down 0.3% on Wednesday following news that the company had stopped testing an Intel (INTC) production process for advanced semiconductors. This highlights the dynamic and sometimes conflicting news flow surrounding high-profile tech stocks.
- Marvell Technology (MRVL), an AI semiconductor giant, was a major gainer for the Nasdaq, with its stock price rising 3.4%.
- Novo Nordisk (NVO) climbed 7.3% after the U.S. FDA approved its GLP-1 pill for the treatment of overweight or obesity, signaling a significant development in the pharmaceutical sector.
- Huntington Ingalls Industries (HII) saw its shares rise 0.3% amid news of the U.S. government's plans for a new class of "Trump class" battleships.
- ServiceNow (NOW) shares fell 1.5% following the company's 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.
As the year draws to a close, investors will be closely watching for any further economic indicators or corporate announcements that could influence market sentiment as trading resumes on Friday, December 26th. The "Santa Claus rally" period is officially underway, and market participants will be hoping for continued positive momentum into 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.