U.S. stock markets are closed today, December 25, 2025, for the Christmas holiday. But investors have plenty to celebrate after yesterday's abbreviated session delivered fresh all-time highs for both the Dow Jones Industrial Average and the S&P 500. The major indices extended their winning streak to five consecutive sessions, setting the stage for the traditional Santa Claus rally period.
Christmas Eve Recap: Records Across the Board
In a holiday-shortened session that closed at 1:00 PM ET, markets powered higher:
- Dow Jones Industrial Average: Rose 288.75 points (0.60%) to close at 48,731.16—a record closing high
- S&P 500: Advanced 0.32% to finish at 6,932.05—another all-time closing record
- Nasdaq Composite: Gained 0.22% to settle at 23,613.31
Trading volumes were predictably light, running approximately 40% below normal levels as many institutional traders took early leave for the holiday.
What Drove the Rally
Tech leadership continued: The "Magnificent Seven" stocks provided the fuel for the rally. Nvidia, Broadcom, and other semiconductor names led the charge as AI optimism persisted.
Nike surged: Shares jumped 4.6% after a regulatory filing revealed Apple CEO Tim Cook purchased $3 million worth of Nike stock. As a longtime Nike board member, Cook's purchase was viewed as a vote of confidence in the company's turnaround.
Pharma deals: Dynavax Technologies soared 38% after Sanofi announced a $2.2 billion acquisition, adding momentum to the healthcare sector.
Economic strength: Final Q3 GDP data confirmed the economy grew at a robust 4.3% pace, supporting the case for corporate earnings growth heading into 2026.
2025 Year-to-Date Performance
With just a handful of trading days remaining, here's where major indices stand for the year:
- S&P 500: Up more than 17%
- Nasdaq Composite: Up approximately 22%
- Dow Jones: Up around 14.5%
If these gains hold, 2025 will mark the third consecutive year of double-digit returns for the S&P 500—a remarkable feat given elevated interest rates and recession fears that dominated earlier in the year.
Santa Claus Rally Window Open
The Christmas Eve session marked the official start of the Santa Claus rally period. According to the Stock Trader's Almanac, this seven-day window—from the last five trading days of December through the first two of January—has historically produced an average S&P 500 gain of 1.3%, with positive returns 78% of the time.
The pattern is more than a curiosity. When the Santa Claus rally delivers gains, the S&P 500 has historically averaged a 2.6% return in the following three months. When it fails, the index has averaged a 1% loss.
What to Watch When Markets Reopen
Trading resumes tomorrow, December 26, for a full session. Key factors to monitor include:
- Bond yields: The 10-year Treasury yield near 4.15% remains a headwind for equity valuations
- Bitcoin: Cryptocurrency markets traded through the holiday, with Bitcoin hovering near $87,000
- Year-end positioning: Expect continued light volumes through New Year's Eve
- Economic data: Weekly jobless claims due Thursday
The Bottom Line
Wall Street heads into Christmas in a celebratory mood. Record highs, strong economic data, and the seasonal tailwind of the Santa Claus rally have positioned markets for a potentially strong finish to 2025. With institutional traders largely away until the new year, expect thin trading conditions and potentially amplified price moves in either direction. The real test comes in January when normal volumes return and investors begin positioning for 2026.
