S&P 500 Holds at Record After $17.5 Trillion Rally: Markets Wrap

(Bloomberg) — A relatively quiet session on Wall Street before Christmas saw stocks holding at all-time highs, with more signs the jobs market is not quickly deteriorating supporting bets on a soft economic landing.

Investors hoping for a “Santa Claus Rally” — which typically encompasses the last five trading sessions of the year and the first two of the new one — saw the S&P 500 edging mildly up at the start of that period. Volume was almost 50% below the average of the past month. Bonds and the dollar wavered.

The subdued action contrasts with the extreme turbulence driven by the tariff storm earlier in the year that put the equity benchmark on the brink on a bear market. Since then, stocks surged, with every dip being bought at record pace and the fear of missing out dominating sentiment.

While the impressive rally briefly stalled as exuberance over artificial intelligence was questioned in the final stretch of the year, bets the Federal Reserve will have further room to cut rates in 2026 kept fueling optimism over Corporate America’s profits.

“We believe investors should position for further advances in equity markets,” Ulrike Hoffmann-Burchardi at UBS Global Wealth Management said this week. “We maintain our attractive rating on US equities. We find compelling opportunities in tech, health care, utilities, as well as financials, which should broaden the foundation for further gains.”

As traders parsed the latest economic data, they’re sticking with their call that the Fed makes two quarter-point reductions in policy rates next year, one more than officials’ median forecast.

Applications for US unemployment benefits fell last week, highlighting the seasonal swings in the data at this time of year. Wednesday’s figures are consistent with a labor market seeing relatively low layoffs, a trend that has remained intact throughout the year despite heightened economic uncertainty.

“For now, we expect two rate cuts next year, likely in the first half, and, provided unemployment doesn’t spiral, a resilient economy, cooling inflation and easier policy should be supportive for risk assets in the year ahead,” Magdalena Ocampo at Principal Asset Management said this week.

The S&P 500 hovered near 6,920. Intel Corp. fell after a report that Nvidia Corp. halted a test to use Intel’s production process to make advanced chips. Nike Inc. climbed about 5%. The yield on 10-year Treasuries was little changed at 4.16%. The dollar fell 0.1%.

Trading at the New York Stock Exchange wraps up at 1 p.m. local time, while the recommended close for Treasuries is one hour later.

Corporate Highlights:

Nike Inc. rose after a filing showed that Apple Inc.’s Tim Cook purchased $2.95 million worth of shares on Dec. 22. Tricolor Holdings founder Daniel Chu collected nearly $30 million in compensation in the year leading up to the subprime auto lender’s collapse amid alleged fraud, according to a lawsuit filed by the trustee overseeing the company’s liquidation. Sanofi agreed to buy Dynavax Technologies Corp. for about $2.2 billion, as it seeks to expand a vaccines business currently anchored by its flu shot franchise. BP Plc agreed to sell a majority stake in its Castrol lubricants division to US investment firm Stonepeak Partners, marking a key milestone as the oil and gas major seeks to reduce debt and reset its business. KKR & Co. and PAG agreed to buy the real estate holdings of beermaker Sapporo Holdings Ltd. in one of Japan’s largest property deals this year. Honda Motor Co. will buy out LG Energy Solution Ltd.’s facilities and other assets from their joint battery plant in Ohio for about 4.2 trillion won ($2.9 billion) as America’s pullback in electric vehicles continues to ripple across the industry’s supply chain. Tokyo Electric Power Co. plans to restart the world’s largest nuclear power plant next month, marking the Japanese utility’s return to atomic energy nearly 15 years after the Fukushima disaster. China’s Jiangxi Copper Co. has agreed to buy copper miner SolGold Plc in a deal that values the company at little over $1 billion. Chinese home appliance maker Haier Smart Home Co. agreed to sell a 49% stake in its India unit to Bharti Enterprises Ltd. and Warburg Pincus. Some of the main moves in markets:

Stocks

The S&P 500 rose 0.2% as of 10:31 a.m. New York time The Nasdaq 100 was little changed The Dow Jones Industrial Average rose 0.4% The Stoxx Europe 600 was little changed The MSCI World Index rose 0.1% Bloomberg Magnificent 7 Total Return Index fell 0.4% The Russell 2000 Index rose 0.1% Intel fell 1.6% Nike rose 4.8% Currencies

The Bloomberg Dollar Spot Index fell 0.1% The euro fell 0.1% to $1.1780 The British pound was little changed at $1.3508 The Japanese yen rose 0.3% to 155.80 per dollar Cryptocurrencies

Bitcoin fell 0.9% to $86,829.73 Ether fell 2% to $2,914.44 Bonds

The yield on 10-year Treasuries was little changed at 4.16% Germany’s 10-year yield declined four basis points to 2.86% Britain’s 10-year yield was little changed at 4.51% The yield on 2-year Treasuries was little changed at 3.52% The yield on 30-year Treasuries declined one basis point to 4.81% Commodities

West Texas Intermediate crude fell 0.1% to $58.30 a barrel Spot gold fell 0.3% to $4,470.99 an ounce ©2025 Bloomberg L.P.