US equity markets climbed on Monday as technology stocks led broader market gains. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all posted positive returns. Trading volume remained light during the holiday-shortened week leading up to Christmas.
The S&P 500 advanced 36 points to close at 6,869, representing a gain of 0.5%. The Nasdaq Composite increased by 136 points, finishing at 23,441, marking a rise of 0.6%. The Dow Jones Industrial Average gained 180 points, reaching a level of 0.4% higher. These gains extended the market’s positive momentum from the previous week.​
Technology Sector Leads Revival
Artificial intelligence and technology shares powered market gains throughout the trading session. Nvidia, Micron Technology, and Oracle Corporation all demonstrated strength in premarket and regular trading hours. Investors rotated back into technology stocks after rotating away during the previous week’s weakness over valuation concerns.​
The Nasdaq 100 demonstrated particular strength, poised to erase December losses despite earlier volatility in technology shares. Futures on the gauge had risen 0.6% heading into Monday’s session. Oracle and Micron Technology climbed more than 2% in premarket trading, signalling renewed confidence in AI-related equities. Most members of the Magnificent Seven megacap technology companies advanced during the session.​
Market Breadth and Seasonal Optimism
Broader market indices outperformed as investors gained confidence heading into year-end. The S&P 500 maintained its position above the 6,850 technical level despite earlier concerns about the index struggling to hold crucial support. Trading conditions remained subdued across global markets as many investors anticipated limited economic data releases and corporate announcements during the final weeks of December.​
Analysts pointed to the potential for a traditional “Santa Claus rally” where stock prices typically rise in late December and early January. Clark Bellin, Chief Investment Officer of Bellwether Wealth, noted seasonal strength at year-end could serve as momentum needed for markets to break free from constrained trading ranges. This phenomenon typically occurs as investors adjust portfolios for the upcoming year.​
Commodity Markets Surge Amid Geopolitical Tensions
Precious metals reached unprecedented levels as safe-haven demand strengthened. Gold futures climbed to a new record high of $4,453 per ounce early Monday. Gold prices surged nearly 70% throughout 2025, driven by Federal Reserve rate reductions, significant central bank purchases, and momentum-driven investor enthusiasm.​
Gold futures climbed to a new record high
Silver futures also achieved new peaks on Monday, exceeding $69.50 per ounce with recent trading showing increases over 2% to around $69.10. West Texas Intermediate crude oil futures surged by 12% to $57.65 per barrel amid escalating tensions between the United States and Venezuela.​
The appreciation in precious metals reflected investor concerns about geopolitical risks and expectations for lower interest rates moving forward. Higher yields tend to weigh more heavily on precious metals, yet falling rate expectations enhanced gold’s appeal compared to yield-generating assets like bonds and savings accounts.​
Treasury Yields and Currency Markets
The 10-year Treasury yield increased by 2 basis points to 4.17% during Monday’s trading session. This represented a modest uptick from Friday’s closing level of approximately 4.14%. The yield movement reflected modest economic data and expectations surrounding Federal Reserve policy heading into 2026.​
The US Dollar Index, which measures the dollar’s value against a weighted collection of foreign currencies, dipped by 0.2% to 98.42. Bitcoin recovered from overnight lows near $87,000, trading at approximately $90,000 during the Monday session. The cryptocurrency had risen by 1.1% to $89,000 over the preceding 24 hours according to earlier reports.​
Sector Performance and Investor Sentiment
Healthcare emerged as a favoured refuge during the previous week, with medical instruments, supplies, and pharmaceutical segments outperforming broader peers. The energy sector surged with an impressive 14.82% gain over the same period. FedEx outperformed the market despite broader weakness, rising nearly 1% boosted by strong earnings and optimistic forward guidance.​
Trading conditions remained relatively quiet as investors positioned portfolios for the final week of trading before Christmas holidays. The New York Stock Exchange planned early closure at 1:00 PM on Christmas Eve with full closure on Christmas Day. These adjusted trading hours indicated market participants would operate under compressed schedules during the final trading sessions of 2025.​
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Year-End Market Outlook
Wall Street strategists maintained mixed perspectives on the sustainability of year-end gains. Justin Bergner, portfolio manager at Gabelli Funds, described the current market environment as shifting from an “end-of-year grind” into an “end-of-year churn.” Wells Fargo analyst Michael Turrin noted that sentiment had shifted towards a more negative outlook in the short term, citing concerns regarding the artificial intelligence trade narrative.​
Despite ongoing uncertainties, equity markets demonstrated resilience heading into the final trading week of the year. Technology stocks led the recovery, precious metals reached record levels, and investors maintained hope for continued seasonal strength. The potential for a Santa Claus rally remained a focus as traders navigated the holiday-shortened week and positioned for 2026’s opening session.
