Dec 26, 2025
For the week ending December 26, U.S. equity markets finished modestly higher. The S&P 500 gained about 1.4%, the Dow Jones Industrial Average rose roughly 1.2%, and the Nasdaq Composite also advanced around 1.2%.
Stocks started the week on a positive note as investors responded to signs of easing economic pressure and expectations that interest rates would remain supportive. With trading volumes light during the holiday-shortened week, however, early momentum was difficult to maintain. Midweek volatility emerged as investors weighed rate expectations and valuation concerns, particularly within mega-cap technology stocks. By week’s end, buying interest tapered off as investors opted to take profits and position cautiously for the upcoming year.
Despite the modest weekly gains, market internals showed signs of broader participation beyond just the largest tech names. More stocks contributed to gains this week, reflecting improving market breadth after a period of concentrated leadership. Health care, financials, and industrials have shown relative strength recently, indicating a gradual rotation into sectors tied more closely to economic activity, rather than reliance on mega-cap technology alone.
Overall, the week highlighted a market that remains fundamentally supported but increasingly selective. Gains are being shared more widely across sectors, while volatility persists and investors balance optimism with caution as 2026 approaches.