US stocks closed higher on Wednesday in thin pre-Christmas trading, with the S&P 500 setting a fresh all-time high. Investor activity remained subdued as markets prepared for the holiday break, while softer labor data supported expectations for continued policy easing in 2026.
The New York Stock Exchange closed early at 1:00 p.m. ET on Christmas Eve and will remain closed on Christmas Day, with normal trading resuming on Friday.
Earlier this week, delayed US data showed that Q3 GDP expanded at an annualized pace of 4.3%, well above the 3.2% consensus forecast. While the strong growth print initially weighed on near-term rate-cut expectations, futures markets still price in two Federal Reserve rate cuts by the end of 2026, according to the CME FedWatch Tool.
Investor attention is now shifting toward the widely watched “Santa Claus rally”, a seasonal pattern typically spanning the last five trading days of the year and the first two sessions of January. This year, that window runs from December 24 through January 5.
On the data front, initial jobless claims fell to 214,000 last week, reinforcing signs of labor market stability, although seasonal distortions remain common during the holiday period.
US Markets
Most large-cap technology stocks finished slightly higher, reflecting cautious positioning ahead of the holidays.
- Apple rose 0.53%
- Microsoft gained 0.24%
- Amazon added 0.10%
- Meta Platforms advanced 0.39%
- Broadcom climbed 0.26%
- Nvidia slipped 0.32%
- Tesla edged down 0.03%
Chinese stocks traded mixed, with the Nasdaq Golden Dragon China Index down 0.07%.
- Zai Lab surged 6.29%
- Pinduoduo rose 1.23%
- JD.com gained 0.31%
- Alibaba fell 0.77%
- Baidu declined 0.38%
Market Snapshot
- Dow Jones +288.75 points (+0.60%) to 48,731.16
- Nasdaq +51.46 points (+0.22%) to 23,613.31
- S&P 500 +22.26 points (+0.32%) to 6,932.05 (record close)
Hong Kong Markets
Hong Kong markets were closed for the Christmas holiday, with trading suspended from December 24 afternoon through December 26. Regular trading will resume on December 29.
China A50 & A-Share Markets
Mainland China markets showed mixed performance in early trading. The Shanghai Composite edged higher, while Shenzhen and ChiNext indices remained under mild pressure amid sector rotation.
Sector-wise, paper manufacturing and commercial aerospace stocks outperformed, while precious metals and energy-related shares saw modest pullbacks.
Market Snapshot
- Shanghai Composite +0.29% to 3,952.50
- Shenzhen Component -0.11% to 13,472.22
- ChiNext Index -0.37% to 3,217.47
- Beijing Stock Exchange 50 +1.04%
Total market turnover reached CNY 1.21 trillion, higher than the previous session, suggesting selective positioning rather than broad risk-taking.
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