The first trading session after Christmas delivered a quiet finish to the week on Wall Street. With trading desks thinly staffed and institutional investors largely sidelined for the holidays, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closed slightly lower on December 26, ending a five‑day winning streak. According to Associated Press data, all three major indexes slipped less than 0.1% in the subdued session.
The S&P 500 briefly touched an intraday high of 6,945.77, extending the record‑setting momentum from earlier in the week, before fading into the close. Still, despite Friday’s softness, the major indexes posted weekly gains of more than 1%, capping a shortened holiday week with a modest but positive tone.
Light Trading Defines the Session
With global markets partially closed for Boxing Day and U.S. government offices shut due to the federal holiday declaration, liquidity was thin—an environment that often magnifies small moves but rarely produces major swings. As AP reporting noted, "trading was light with institutional investors largely closed out for the year".
The final numbers for Friday:
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Dow Jones Industrial Average: −20.19 points (−0.04%) to 48,710.97
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S&P 500: −2.11 points (−0.03%) to 6,929.94
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Nasdaq Composite: −20.21 points (−0.1%) to 23,593.10
The Philadelphia Semiconductor Index edged higher, while the NYSE FANG+ Index slipped slightly, reflecting mixed sentiment across mega‑cap tech and chipmakers.
Oil Falls as Ukraine Peace Talks Shift Market Expectations
One of the more notable macro drivers Friday came from overseas. Investors digested new developments in Ukraine peace negotiations, which raised the possibility that a breakthrough could pave the way for more Russian oil returning to global markets. That prospect pushed international crude prices lower, adding pressure to the energy sector.
The AP report also noted that U.S. crude oil fell 2.8% during the session.
Precious Metals Extend Their Record‑Setting Run
While equities paused, gold and silver continued their powerful rally. Both metals hit fresh record highs earlier in the day, supported by:
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A weakening U.S. dollar
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Heightened geopolitical tensions
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Strong safe‑haven demand
Silver prices have been particularly strong, rising nearly 8% this week amid supply constraints, according to AP reporting.
China also reiterated its commitment to preventing excessive volatility in the yuan, adding another layer of currency‑market stability that supported metals demand.
Tech and Semiconductor Stocks: Mixed but Resilient
The tech sector saw modest declines among the major FANG+ names:
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Meta: −0.64%
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Apple: −0.15%
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Alphabet: −0.18%
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Microsoft: −0.064%
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Amazon: +0.060%
Semiconductors were more mixed, but several chipmakers posted gains:
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Nvidia: +1.02%
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Broadcom: +0.55%
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Applied Materials: +0.43%
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Qualcomm: +0.023%
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AMD: −0.023%
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Micron: −0.66%
Taiwanese ADRs outperformed, with TSMC ADR rising 1.35%, followed by ASE, UMC, and Chunghwa Telecom.
Company Highlights
Nvidia Signs Licensing Deal With Groq
Nvidia shares rose after the company signed a non‑exclusive technology licensing agreement with AI chip startup Groq. While details remain limited, the deal reinforces Nvidia’s strategy of expanding its ecosystem through partnerships rather than exclusivity.
Tesla Faces New Safety Investigation
Tesla fell 2.10% after U.S. auto safety regulators opened an investigation into the mechanical emergency door release on the 2022 Model 3. The mechanism has reportedly been difficult to operate in emergencies, adding to Tesla’s ongoing regulatory scrutiny.
Coop Surges After Data Incident Update
Coop jumped 6.45% after announcing that a former employee had improperly downloaded data from roughly 3,000 customers. The company said the data was deleted and not shared, though it still faces a shareholder class‑action lawsuit.
Apple Slips Despite Strong China Import Data
Apple dipped slightly even as new data showed China’s imports of foreign‑brand smartphones rose 128% year‑over‑year in November, according to Reuters‑cited research. A federal judge also rejected Masimo’s request to block Apple Watch imports, keeping the long‑running patent dispute alive.
Wall Street Outlook: Eyes on 2026
Rate‑cut expectations for early 2026 have cooled. Traders now assign less than a 15% chance of a January cut, and March expectations remain split. Still, the broader market has held firm, supported by optimism about next year’s policy landscape.
Tom Hainlin, National Investment Strategist at U.S. Bancorp Asset Management, told AP that the market is currently driven by "technical factors and positioning," given the lack of earnings reports or major economic releases.
Hainlin is more upbeat about 2026, pointing to:
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The tax reform bill signed in July
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The Fed’s fourth‑quarter rate cuts
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A more balanced rally that could lift sectors beyond tech
His view aligns with the broader sentiment that 2026 may bring a more synchronized market expansion, rather than the mega‑cap‑driven gains that defined much of 2025.
A Quiet Session, but a Strong Week
Friday’s muted action doesn’t detract from the market’s broader momentum. With the S&P 500 up nearly 18% year‑to‑date and precious metals surging, investors head into the final days of 2025 with cautious optimism.
The holiday lull may have paused the rally, but the underlying narrative remains intact: a resilient U.S. market, easing inflation pressures, and a cautiously improving global backdrop.