Wall Street closed nearly unchanged in a light-volume, post-Christmas session on Friday, as the absence of major catalysts left investors with little conviction in either direction.
All three major U.S. stock indexes edged slightly lower, snapping a five-session winning streak, though they still posted gains for the week.
“We had a very strong five-day rally, so today is really just a pause to catch our breath after the holiday,” said Ryan Detrick, chief market strategist at Carson Group. “We’re only on day two of the Santa Claus rally window, and there’s still room for some upward bias.”
Investors continued to monitor the so-called “Santa Claus rally,” a seasonal pattern in which the S&P 500 tends to rise during the final five trading days of the year and the first two of the new year—a period that began Wednesday and runs through January 5. Historically, a successful Santa Claus rally has been viewed as a positive signal for market performance in the year ahead.
With just three trading days left, markets are nearing the end of a volatile year marked by tariff concerns, ongoing geopolitical tensions, and strong momentum in artificial intelligence-related stocks. Despite the turbulence, all three major indexes—led by the tech-heavy Nasdaq—remain on track for double-digit annual gains.
“Volatility is the price investors pay for the solid returns we’ve seen over the past three years,” Detrick said. “There’s little reason to expect 2026 to be free of market swings or negative headlines, so investors should stay prepared.”
U.S. stocks finished marginally lower on Friday, with all three major indexes posting small declines in thin, post-holiday trading.
The Dow Jones Industrial Average slipped 20.19 points, or 0.04%, to 48,710.97. The S&P 500 edged down 2.11 points, or 0.03%, to 6,929.94, while the Nasdaq Composite fell 20.21 points, or 0.09%, to 23,593.10.
Among the S&P 500’s 11 major sectors, materials led gains on the day, while consumer discretionary was the weakest performer.
On a year-to-date basis, communication services, technology, and industrials continue to outperform the broader market. Real estate remains the only sector on track to post a decline for 2025.
🔹 Stock Movers
Nvidia shares rose 1.0% after the AI chipmaker agreed to license chip technology from startup Groq and hire its chief executive officer.
Target advanced 3.1% following a Financial Times report that the retailer is facing shareholder activism from hedge fund Toms Capital Investment Management, which has built a significant stake in the company.
U.S.-listed precious metals miners, including First Majestic, Coeur Mining, and Endeavour Silver, climbed between 1.2% and 3.0%, tracking fresh record highs in gold and silver prices.
🔹 Market Breadth
Market breadth was modestly positive, with advancing stocks outnumbering decliners by a ratio of 1.13 to 1 on the New York Stock Exchange. The session saw 342 new highs and 66 new lows.
On the Nasdaq, declining issues outpaced advancers, with 2,605 stocks falling versus 1,968 rising, a 1.32-to-1 ratio.
The S&P 500 recorded 20 new 52-week highs and no new lows, while the Nasdaq Composite posted 46 new highs and 166 new lows.
Trading volume on U.S. exchanges totaled 10.22 billion shares, well below the 20-day average of 15.98 billion, underscoring the thin, post-holiday market conditions.
Sources: Reuters
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