US Stocks Break Records as Historical Holiday Trend Begins
New York, Friday, 26 December 2025.
The Dow and S&P 500 hit historic peaks on Christmas Eve, launching a seasonal trend that has boosted markets 80% of the time over the past half-century.
Record Highs Mark Holiday Start
Wall Street entered the Christmas break on a high note. On Wednesday, December 24, the Dow Jones Industrial Average climbed 288.75 points, or 0.60%, to close at 48,731.16, while the S&P 500 advanced 0.32% to finish at 6,932.05 [1]. The tech-heavy Nasdaq Composite also saw gains, rising 51.46 points to 23,613.31 [1]. This broad rally was driven largely by a rebound in AI-related stocks following a selloff earlier in the month, pushing the indices to record closing highs during a holiday-shortened session [1].
Economic Resilience and Corporate Movers
Underpinning this market optimism is robust economic data. A recent report indicated that the US economy grew at an annual rate of 4.3% between July and September, signaling continued resilience [3]. Furthermore, data released on Wednesday showed a decline in new applications for jobless benefits for the week of December 15, alleviating some concerns regarding the labor market [1]. Despite these positive indicators, the S&P 500 had previously dipped 2.6% in November, failing to set a record high that month before this week’s recovery [2].
Monetary Policy and Global Outlook
Looking ahead to 2026, market participants are calibrating their expectations for the Federal Reserve. While there is anticipation for roughly 50 basis points of rate cuts next year, the probability of a reduction in January remains low [1]. Tim Ghriskey, a senior portfolio strategist at Ingalls & Snyder, noted that while yields are behaving, the Fed is unlikely to lower rates again immediately [1]. This unfolds against a complex political backdrop; on December 23, President Donald Trump remarked that anyone disagreeing with him would “never be the Fed chairman” [1].