Global Economic Times

S&P 500 Hits New Intraday Record Amid Holiday-Shortened Trading; Santa Rally Expectations Mount: Ana Fernanda Reporter / Updated : 2025-12-25 04:30:52

NEW YORK — U.S. equity markets showed resilience on Wednesday, with the S&P 500 Index touching a fresh intraday all-time high as investors positioned themselves for a potential "Santa Claus Rally" despite thin trading volumes ahead of the Christmas holiday.

Market Performance and Sector Movers
As of approximately 10:20 a.m. ET on December 24, the S&P 500 edged up 0.15%, trading near the 6,920 mark, surpassing its previous record set just a day earlier. The Dow Jones Industrial Average gained 0.2%, while the Nasdaq Composite fluctuated near the flat line.

Individual equities saw significant movement driven by corporate developments:

Nike (NKE): Shares surged nearly 4% following news that Apple CEO Tim Cook, a longtime Nike board member, purchased 50,000 shares of the sportswear giant.
Intel (INTC): Shares tumbled over 3% after reports indicated that Nvidia has halted testing on Intel’s advanced "18A" manufacturing process, raising concerns over Intel's foundry ambitions.
Tesla (TSLA): The EV maker fell more than 1% as U.S. auto regulators initiated an investigation into reported door defects in the Model 3.
AI Sector: Large-cap tech names including Nvidia, Alphabet, and Broadcom started the session with modest losses.

Surge in Safe Havens and Commodities
While equities reached new heights, the commodities market witnessed an extraordinary rally. Gold prices shattered records, climbing above $4,500 per ounce, while Silver surged past $70. Copper also continued its robust 2025 performance, trading above $12,000 per ton, marking a year-to-date increase of over 40%.

In the fixed-income market, the 10-year Treasury yield eased slightly to 4.15%, while the 2-year yield remained stable at 3.53%. Cryptocurrencies saw a minor retreat, with Bitcoin trading around $87,199.

Economic Outlook and the "Santa Rally"
Market participants are currently balancing robust growth data with signs of cooling in the labor market. While third-quarter GDP grew at a surprisingly strong 4.3%, softened consumer confidence and employment metrics have led traders to maintain expectations for two 25-basis-point interest rate cuts by the Federal Reserve in 2026.

Wall Street remains optimistic about the year-end performance. According to LPL Financial, the "Santa Claus Rally"—defined as the final five trading days of December and the first two of January—has historically seen the S&P 500 rise 78% of the time, with an average gain of 1.3%.

"The current momentum suggests that the Santa Claus Rally is well underway," noted Adam Turnquist, Chief Technical Strategist at LPL Financial. He added that if the S&P 500 closes above its December highs, it could pave the way for a psychological breakthrough of the 7,000 level in early 2026. Tom Essaye, founder of Sevens Report, echoed this sentiment, stating that investors are increasingly confident in a "soft landing" for the U.S. economy.

The New York Stock Exchange closed early at 1:00 p.m. ET today and will remain closed on Thursday, December 25, in observance of Christmas Day.