U.S. stocks showed little movement on Friday as traders returned from the Christmas holiday for a fleeting session before the weekend. The Dow Jones Industrial Average, the S&P 500, and the tech-focused Nasdaq Composite all remained close to unchanged amid light trading following the festivities.
In a contrasting trend, precious metals continued to thrive, with gold and silver futures reaching new highs amidst escalating geopolitical tensions and a sustained depreciation of the dollar. This increase in precious metals follows a particularly strong performance as traders have flocked to safe-haven assets in uncertain times.
The week prior concluded with the S&P 500 and the Dow marking record highs during the Christmas Eve trading session. With all three major indexes achieving their fifth consecutive win, Wall Street entered the festive “Santa Claus rally” period, typically characterized by stock market gains during the last five trading days of the year and the first two of the new year.
The upward momentum this year has propelled the indices toward solid gains, wrapping up a year marked by volatility but ultimately significant growth. Notably, the S&P 500 has surged approximately 18% year-to-date, and it appears destined for its sixth year of 15% or greater returns over the last seven years.
The Nasdaq has led the charge with a remarkable rise exceeding 20% in 2025, overcoming a brief stint in a bear market triggered by President Trump’s sweeping tariff actions earlier in the year.
Moreover, despite a looming uncertainty regarding future interest rate cuts from the Federal Reserve, stocks have remained buoyant. Currently, traders see less than a 15% probability of a rate cut next month, while opinions are more varied concerning the Fed’s decision in March.
As the year comes to a close, investors are optimistic about maintaining the momentum, despite the absence of major economic reports or earnings announcements to guide market sentiment through the end of the holiday-shortened week.