Key Moments
- Major U.S. equity benchmarks opened higher, with the S&P 500 up 0.5% to 6,870.10, building on its strongest session in nearly a month.
- Investors are monitoring a delayed third-quarter GDP release and December consumer confidence data in a week marked by thin holiday trading.
- Renewed optimism around AI-related technology stocks and growing expectations for Fed rate cuts in 2026 are underpinning market sentiment.
U.S. Indexes Advance as Year-End Rally Builds
Investing.com– A year-end advance in U.S. equities continued to gather pace as the market opened higher in a holiday-shortened week, with trading activity expected to be subdued.
The S&P 500 climbed 0.5% to 6,870.10 at the open, extending Friday’s 0.9% gain, which marked the index’s strongest daily performance in nearly a month. The Nasdaq 100 added 0.7%, carrying forward last week’s rebound in technology names. The Dow Jones Industrial Average rose about 0.5%.
Investors are increasingly positioning for further gains into 2026, even as lower volumes associated with the holiday period have the potential to amplify market moves.
US STOCKS KICKING OFF THE WEEK IN THE GREEN! 📈🚀
Neutral sentiment? More like
QUIETLY BULLISH!
🔸Dow: 48,224 (+89 | +0.19%)
🔸S&P 500: 6,866 (+31 | +0.46%)
🔸Nasdaq: 23,457 (+150 | +0.64%)Tech rebound + holiday vibes = Markets edging higher into Christmas week! 🎄… pic.twitter.com/Iy8k0OM72w
— Crypto News Hunters 🎯 (@CryptoNewsHntrs) December 22, 2025
Economic Data Calendar: GDP and Consumer Confidence in Focus
Market participants are awaiting several U.S. economic reports, with a delayed third-quarter GDP release due later today. However, that report is widely viewed as backward-looking and reflective of conditions prior to the government shutdown.
More attention is likely to center on December consumer confidence figures from the Conference Board. The data follow a downturn in sentiment in November, when confidence slipped to its weakest level since the period of turmoil around Liberation Day in April. Beyond these releases, the macroeconomic calendar is relatively light, offering few additional catalysts.
Recent Performance of Key U.S. Equity Benchmarks
| Index | Recent Move | Context |
|---|---|---|
| S&P 500 | +0.5% at open to 6,870.10; +0.9% on Friday | Strongest session in nearly a month on Friday; modest weekly gain of about 0.1% last week |
| Nasdaq 100 / NASDAQ Composite | Nasdaq 100 +0.7% at open; NASDAQ Composite up roughly 0.5% last week | Helped by rebound in technology and semiconductor shares |
| Dow Jones Industrial Average | Up about 0.5% at open | Declined around 0.7% over last week |
Holiday Schedule Poised to Curb Volumes
Trading conditions are expected to remain muted as U.S. markets transition into a shortened holiday timetable. Wall Street is set to close early on Wednesday and remain shut on Thursday for Christmas Day. Such schedules typically dampen participation and can lead to outsized price swings when liquidity is thinner.
AI and Chipmakers Power Renewed Tech Leadership
Wall Street finished last week with mixed results. The S&P 500 ended the week up about 0.1%, while the NASDAQ Composite gained roughly 0.5%, supported by a recovery in large technology and semiconductor stocks. In contrast, the Dow Jones Industrial Average lost around 0.7% over the same period.
Technology names were a focal point after Micron Technology (NASDAQ:MU) issued an upbeat forecast, reigniting interest in shares tied to artificial intelligence themes. The guidance helped rebuild confidence in a group that had recently come under pressure from concerns about extended valuations, substantial capital needs, and whether demand growth would be sufficient to sustain high prices.
Oracle Corporation (NYSE:ORCL) also drew investor attention after its shares rose last week on reports that TikTok had agreed to sell its U.S. operations to a new joint venture, with Oracle expected to have a prominent role in providing cloud and data infrastructure services. That development supported Oracle’s stock and contributed to broader gains in large-cap technology names.
The renewed advance highlighted persistent optimism that demand for advanced chips remains robust, even as questions linger over how current valuations in the sector align with fundamentals.
Rate-Cut Expectations in 2026 Bolster Risk Appetite
Broader equity sentiment received additional support from last week’s U.S. inflation data. A softer-than-anticipated consumer price index reading strengthened market expectations that the Federal Reserve could move more quickly to reduce interest rates in 2026. The inflation print pushed U.S. Treasury yields lower, creating a further tailwind for risk assets.
“If the unemployment rate continues to edge higher, we think the Fed will respond by pushing its policy rate lower. If not, cuts from the Fed in 2026 will come later, only after it becomes clear that inflation pressures are receding,” Morgan Stanley economist Michael Gapen said in a note.
Investors are also following developments around the Fed’s leadership transition for additional insight into the future policy path. With current Fed Chair Jerome Powell’s term scheduled to conclude in May and President Donald Trump interviewing several finalists, markets are closely scrutinizing remarks on interest rates and the central bank’s strategic direction.
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