New S&P 500 high and gold rises above $4500 - Market review from December 24, 2025

US Indices Hit Record Highs Driven by Tech and Solid Macro Data

The US stock market shows strength, with the S&P 500 reaching a new closing high of 6909.79 points (up 0.5%). The Dow Jones increased by 0.2% to 48442.41 points, continuing a four-day winning streak, while the Nasdaq outperformed with a 0.6% rise to 23561.84 points. The technology sector, fueled by AI expectations, was the main growth driver.

AI Chips and Electronics Drive Gains Among Tech Giants

Nvidia rebounded from a three-day decline, rising 3.01% to $189.21, supported by news of planned H200 chip shipments to China before the Chinese New Year. Google benefits from revealed plans for AI glasses in 2026, while Microsoft maintains steady growth thanks to ongoing investments in AI infrastructure.

In contrast, Tesla faced challenges — sales in Europe fell 12% year-over-year in November, reflecting increasing competition in the electric vehicle market. However, Apple showed a strong rebound, and Amazon followed the sector trend.

Gold Breaks Another Barrier, Oil Also Rises

Spot gold surpassed $4500 for the first time, with futures open at $4481.80 per ounce (up 0.3% day-over-day). The rise is driven by geopolitical risks and inflation expectations. Meanwhile, WTI increased by 0.73% to $58.43 per barrel, and Brent rose 0.66% to $62.48, supported by an 11.75% increase in natural gas prices and global demand outlooks.

US GDP Grows 4.3% - Economic Strength Contrasts Political Uncertainty

The third quarter delivered disappointing forecasts — annual GDP growth was 4.3%, above expectations. Growth was driven by consumer spending and exports, with corporate profits increasing by $166 billion. The administration praises the results but also notes tensions between the White House and the Federal Reserve regarding further interest rate changes.

Fed Chair candidate Hassett states that US rate cuts lag behind other central banks worldwide, creating complex dynamics for monetary policy. These differing views on policy direction could increase market volatility in the medium term.

ServiceNow Strengthens Position with $7.75 Billion Acquisition of Armis

In the M&A sector, ServiceNow will invest $7.75 billion to acquire Armis, enhancing its cybersecurity capabilities. Wall Street views this positively, considering it a strategic move to boost competitiveness. UBS maintains a “buy” recommendation for the company, suggesting that a wave of tech acquisitions could lead to sector revaluation.

Energy and Consumer Sectors Show Mixed Dynamics

The energy sector rose 0.73%, supported by a rebound in commodity prices, while the consumer sector remained stable despite the fifth consecutive month of declining consumer confidence. Solid global GDP data and potential economic stimuli provide a buffer for the consumer sector.

Dominion Energy showed volatility, but mid-sized companies like Clearwater Analytics performed relatively well. Investment banks, including Barclays, view the long-term prospects of energy stocks as a defensive allocation positively.

Upcoming Market Events - Watch for Unemployment and Oil Inventory Data

The market awaits the release of initial jobless claims (at 21:30 Eastern Time) and EIA oil inventory data (at 23:30). The stock exchange closes early at 13:00 due to Christmas preparations, which may reduce liquidity.

The Bank of Japan’s October meeting minutes will also provide insights into the global monetary policy outlook.

Year-End Outlook - Optimism Persists Amid Low Liquidity

Year-end sentiment remains positive, supported by solid economic data and $380 billion in AI infrastructure investments. However, market divergence — where most stocks decline despite main indices rising — suggests stock selection will be key.

Low holiday liquidity may amplify price movements, so investors should pay close attention to labor market data releases to assess the resilience of the US economy and potential implications for monetary policy in early 2026.