Market Summary - December 31, 2025
Early Look
As the final trading day of 2025 approaches, major stock indices are experiencing a slight downturn after reaching all-time highs just over a week ago. The Dow Jones, Russell 2000, Dow Transports, and S&P 500 have all seen a three-day losing streak, yet they remain on track for solid annual gains, particularly in sectors such as Technology, Communications, Industrials, and Financials.
Current Futures
- Dow: -74.00 points (0.15%) at 48,576
- S&P 500: -13.25 points (0.20%) at 6,930
- Nasdaq: -69.50 points (0.27%) at 25,605
Yearly Performance
The S&P 500 is up over 17% for the year, marking its sixth year of gains exceeding 15% in the last seven years. The Nasdaq Composite is on track for over 20% gains, while the Dow has increased by over 13%. Notably, AI-related stocks have significantly contributed to the record highs achieved this year.
Market Trends
According to historical data, when the S&P 500 has recorded eight consecutive months of gains, it has typically continued to rise, with a median gain of 7.8% over the following six months.
Global Market Overview
Asian markets, including the Nikkei, Hang Seng, and Shanghai, were closed for New Year’s Eve. In Europe, the German DAX was also closed, while the FTSE 100 saw a minor decline of 21 points to 9,919. Precious metals have seen a decline, with silver prices down 5.8% to around $72 an ounce and gold prices down 1.3% to $4,328 after reaching all-time highs recently.
Economic Indicators
The Federal Reserve's interest rate decisions will be crucial as we move into 2026, especially following recent mild economic data and expectations of a dovish Fed chair. The U.S. dollar is on track for an annual decline of about 8%, the steepest since 2017, influenced by Fed rate cuts.
Market Closing Prices (Previous Day)
- S&P 500: -9.50 points (0.14%) at 6,896.24
- Dow Jones: -94.87 points (0.20%) at 48,367.06
- Nasdaq: -55.27 points (0.24%) at 23,419.08
- Russell 2000: -19.21 points (0.76%) at 2,500.59
Economic Calendar for Today
- 7:00 AM ET: MBA Mortgage Applications Data
- 8:30 AM ET: Weekly Jobless Claims
- 9:45 AM ET: Chicago PMI for December
- 10:30 AM ET: Weekly DOE Inventory Data
- 12:00 PM ET: Weekly EIA Natural Gas Inventory Data
Sector News Breakdown
Consumer Sector
Nike shares saw a slight increase after CEO Elliott Hill purchased shares valued at $1M. Michael Burry, known for his role in "The Big Short," clarified he is not shorting Tesla despite previous comments on its valuation.
Energy, Industrials, and Materials
Fuelcell Energy has filed for a common stock offering of up to $200 million. Precious metals prices have dropped following margin requirement increases by the CME Group.
Healthcare
Drugmakers are planning to raise prices on over 350 branded medications, including vaccines and cancer treatments, amid ongoing pressures for price cuts.
Technology, Media & Telecom
Nvidia shares are slipping in premarket trading, although strong demand for AI processors in China may indicate future growth potential.