On December 25, 2025, U.S. stocks closed early due to the holiday. Better-than-expected initial jobless claims data and strong performances in the consumer staples and real estate sectors drove the three major U.S. stock indices higher, marking their fifth consecutive day of gains.
At the close, the Dow Jones Industrial Average rose 288.75 points, or 0.60%, to 48,731.16, while the Nasdaq Composite gained 0.22% to 23,613.31. The S&P 500 climbed 0.32% to 6,932.05, setting a new closing record alongside the Dow. According to Dow Jones Market Data, this marked the first time since 2013 that the S&P 500 hit a record high on Christmas Eve.
Among individual stocks, Intel fell 0.5% following reports that Nvidia would not proceed with testing chip production using Intel’s 18A process technology. Reports also indicated that Nvidia’s $5 billion investment in Intel in September did not include a commitment to mass production. Nvidia shares declined 0.3%.
Major tech stocks mostly rose, with Oracle up 1.1%, Apple gaining 0.5%, Meta rising 0.4%, Microsoft adding 0.2%, and Amazon edging up 0.1%. Google and Tesla closed flat.
Nike surged 4.6% after regulatory filings revealed that Apple CEO Tim Cook purchased $3 million worth of its shares.
The Nasdaq Golden Dragon China Index dipped slightly by 0.1%. Pinduoduo rose 1.2%, while JD.com gained 0.3%. Baidu fell 0.4%, NetEase dropped 0.6%, and Alibaba declined 0.7%.
The U.S. Labor Department reported that initial jobless claims fell to 214,000 for the week ending December 20, down from 224,000 the previous week. Throughout the year, claims have fluctuated between 200,000 and 250,000, reflecting employers' reluctance to lay off workers amid economic uncertainty.
The Mortgage Bankers Association (MBA) noted a 5% decline in mortgage applications for the week ending December 19, with refinancing applications down 6%. MBA Chief Economist Mike Fratantoni stated, "Despite a slight drop in mortgage rates, applications fell last week. We expect softness in the job market, persistent inflation, high housing inventory, and stable mortgage rates to continue into the new year."
The U.S. Commerce Department’s delayed Q3 GDP report, released Tuesday, showed growth of 4.3%, well above the 3.2% consensus. Initially, traders scaled back expectations for early 2026 rate cuts, but CME FedWatch data still suggests two rate cuts by year-end.
U.S. Treasury yields declined, with the 2-year yield down 1.6 basis points to 3.51% and the 10-year yield falling 3.4 basis points to 4.135%.
Investors remain hopeful for the "Santa Claus rally," a seasonal uptick typically seen in the last five trading days of the year and the first two of the new year. This year’s rally period runs from December 24 to January 5.
Thomas Martin, senior portfolio manager at Globalt Investments, expects a "quiet period" due to low trading volumes. "Could stocks rise another 1% to 2% before year-end? Absolutely—that’s typical. But a major surge? Unlikely without significant catalysts."
U.S. markets will remain closed on Thursday for Christmas.
In commodities, WTI crude slipped 0.05% to $58.36 per barrel, while Brent crude fell 0.22% to $62.24.
Gold futures for December delivery dipped 0.05% to $4,504 per ounce, while silver futures rose 0.90% to $72.01. Both metals hit intraday record highs earlier, with gold peaking at $4,555.10 and silver at $72.75.
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