U.S. stocks closed at record highs on Tuesday, December 23, as Wall Street extended its winning streak to four sessions heading into the Christmas holiday. The S&P 500 rose 0.5% to close at 6,909.79—a fresh all-time high—while the Nasdaq Composite gained 0.6% and the Dow Jones Industrial Average added 79 points.
Christmas Eve Market Snapshot
Markets are open for a shortened session today, closing at 1:00 PM ET for Christmas Eve. Futures were little changed in pre-market trading, with the S&P 500 hovering just below Tuesday's record close.
Key levels heading into the holiday:
- S&P 500: 6,909.79 (record close), just below intraday high of 6,920.34
- Dow Jones: 48,283.52, up 0.2% on the session
- Nasdaq Composite: 23,420.17, led by tech strength
What's Driving the Rally
Tech leadership: The "Magnificent Seven" continued to power the market higher. Nvidia climbed 3% to lead the Dow, while Broadcom jumped 2.3%, Amazon added 1.6%, and Google parent Alphabet rallied on AI optimism.
Economic strength: Revised Q3 GDP data confirmed the U.S. economy expanded at a 4.3% annualized rate—the fastest pace in two years. Strong growth supports corporate earnings expectations heading into 2026.
Santa Claus rally: The traditional year-end rally period officially begins today. Since 1950, stocks have gained an average of 1.3% during the seven-day period from Christmas Eve through the second trading day of January, posting positive returns 78% of the time.
Holiday Trading Schedule
Investors should note the abbreviated schedule:
- Tuesday, Dec 24 (Christmas Eve): Markets close at 1:00 PM ET
- Wednesday, Dec 25 (Christmas Day): Markets closed
- Thursday, Dec 26: Normal trading resumes
Trading volumes are expected to drop 40-50% below normal levels through the end of the week as institutional investors take holiday leave. The thin liquidity can amplify price swings in either direction.
Year-to-Date Performance
With just a few trading days remaining in 2025, here's where major indices stand:
- S&P 500: +17% year-to-date
- Nasdaq Composite: +19% year-to-date
- Dow Jones: +14% year-to-date
This marks the third consecutive year of strong gains for U.S. equities—a remarkable feat given the elevated interest rate environment. The S&P 500 gained 24% in 2024 and 23% in 2023.
What to Watch This Week
Despite the holiday lull, several factors could move markets:
- Bond market: Treasury yields holding near 4.15% on the 10-year
- Commodities: Gold at record highs above $4,500, oil steady near $78
- Crypto: Bitcoin trading below $88,000 amid year-end selling
- Fed commentary: Any remarks from Fed officials could shift rate expectations
The Bottom Line
Wall Street heads into Christmas in a celebratory mood. Record stock prices, strong economic growth, and the seasonal tailwind of the Santa Claus rally all point to a constructive setup for year-end. The real test comes in January when normal trading volumes return and investors begin positioning for 2026. For now, the bulls are firmly in control.
