US Stocks End Mixed in Light Post-Holiday Trading; Santa Rally Continues
Wall Street ended mixed in light post-holiday trading with all major indexes closing slightly lower, snapping a five-session rally but maintaining weekly gains. The Santa Claus rally period continues with market participants watching for seasonal strength, while precious metals miners outperformed on record gold and silver prices.
*this image is generated using AI for illustrative purposes only.
Wall Street ended a light-volume post-Christmas session nearly unchanged on Friday, with all three major U.S. stock indexes closing nominally lower, snapping a five-session rally but logging weekly gains. Market participants continue watching for signs of the seasonal "Santa Claus rally" phenomenon during this traditionally strong period for equities.
Market Performance Overview
The major indexes posted modest declines in the post-holiday session, with trading volumes remaining well below average levels. Despite the minor pullback, all three indexes secured weekly gains as the market consolidates recent advances.
| Index | Friday Performance | Closing Level | Weekly Status |
|---|---|---|---|
| Dow Jones Industrial Average | -0.04% (-20.19 points) | 48,710.97 | Weekly gain |
| S&P 500 | -0.03% (-2.11 points) | 6,929.94 | Weekly gain |
| Nasdaq Composite | -0.09% (-20.21 points) | 23,593.10 | Weekly gain |
Trading volume reached 10.22 billion shares, compared to the 20-day average of 15.98 billion, reflecting the typical post-holiday market conditions.
Santa Claus Rally Period Continues
"We had a very strong five-day rally, so in a way we're just simply catching our breath today after the holiday," said Ryan Detrick, chief market strategist at Carson Group in Omaha. "This is only day two of the official Santa Claus rally period, so we still have some time, and we think there's going to be a little more upward bias going forward."
The Santa Claus rally period, which began Wednesday and runs through January 5, encompasses the last five trading days of the current year and the first two in the new one. Such a rally would bode well for stock performance in the coming year.
Sector Performance and Individual Movers
Of the 11 major sectors of the S&P 500, materials enjoyed the largest percentage gain, while consumer discretionary was the biggest laggard. Year-to-date, communication services, technology and industrials have outperformed the broader market, with real estate appearing to be the only sector that will have lost ground.
| Notable Gainers | Performance |
|---|---|
| Target | +3.10% |
| Nvidia | +1.00% |
| First Majestic | +1.20% to +3.00% range |
| Coeur Mining | +1.20% to +3.00% range |
| Endeavour Silver | +1.20% to +3.00% range |
Target rose 3.10% after the Financial Times reported the retailer is facing activism from hedge fund Toms Capital Investment Management, which has made a significant investment in the company. Nvidia climbed 1.00% after the AI chipmaker agreed to license chip technology from startup Groq and hire its CEO.
U.S.-listed shares of precious metal miners including First Majestic, Coeur Mining and Endeavour Silver rose between 1.20% and 3.00%, as silver and gold prices touched fresh record highs.
Market Breadth and Technical Indicators
Advancing issues outnumbered decliners by a 1.13-to-1 ratio on the NYSE, while on the Nasdaq, declining issues outnumbered advancers by a 1.32-to-1 ratio. The S&P 500 posted 20 new 52-week highs and no new lows, while the Nasdaq Composite recorded 46 new highs and 166 new lows.
| Exchange | New Highs | New Lows | Advance/Decline Ratio |
|---|---|---|---|
| NYSE | 342 | 66 | 1.13-to-1 (advancing) |
| S&P 500 | 20 | 0 | - |
| Nasdaq | 46 | 166 | 1.32-to-1 (declining) |
Market Outlook and Year-End Positioning
"It's a good reminder for investors that volatility is the toll we pay to get the solid gains we've seen in the last three years," Detrick added. "Odds are, the coming year is not going to be the first year in history with no volatility and no bad headlines. So you prepare yourself."
Just three trading days remain in a turbulent year in which tariff jitters, simmering geopolitical tensions, and the rapid growth of artificial intelligence-related momentum stocks took investors on a bumpy ride. Despite the volatility, all three major indexes, led by the tech-laden Nasdaq, are on track to register double-digit percentage gains for the year.
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