U.S. stock markets delivered a strong holiday-week performance as major indexes climbed and closed at or near record highs ahead of Christmas, even as trading volumes were light during the shortened session.
The Dow Jones Industrial Average and the S&P 500 both hit fresh record closing levels midweek, part of a broad advance across equities that pushed markets higher early in the week. Investors welcomed gains in technology stocks and widespread optimism about future Federal Reserve policy.
Wednesday’s trading marked the start of a so-called “Santa Rally,” with the Dow and S&P posting new highs and the Nasdaq also finishing higher. The market rise came alongside expectations that central bank interest rate cuts could be on the horizon in 2026, supporting risk assets.
Wall Street was closed Thursday for Christmas Day, but holiday traders noted the strong rally leading up to the break.
The week’s gains reflected broader investor confidence in economic resilience, though trading activity was muted due to the holiday schedule. Analysts say solid corporate earnings results and hopes for lower borrowing costs next year helped fuel the market’s upside. While attention now turns to post-holiday trading, many indexes have positioned themselves for continued momentum as 2026 approaches.
