US stocks opened mixed on Friday, December 26, Beijing time, as traders returned to the market following the Christmas holiday, with major indices poised to record weekly advances.
The Dow Jones Industrial Average fell by 9.76 points, or 0.02%, to 48,721.40; the Nasdaq Composite rose by 24.20 points, or 0.10%, to 23,637.51; and the S&P 500 gained 6.12 points, or 0.09%, to reach 6,938.17.
So far this week, the S&P 500 has climbed 1.4%, positioning it for its fourth weekly gain in nearly five weeks. Both the Dow and the Nasdaq have also registered increases of over 1% for the week.
Precious metals continued their explosive rally. Bolstered by a combination of deteriorating geopolitical tensions and a persistently weakening US dollar, both gold and silver futures prices hit fresh all-time highs.
Wall Street has just experienced a record-breaking trading session. The S&P 500 set new intraday and closing record highs on Wednesday. US markets were closed on Thursday for the Christmas holiday.
Mark Newton, Head of Technical Strategy at Fundstrat, wrote, "As 2025 nears its end, the overall balance for the year has been slightly more positive than negative. Despite mainstream narratives centering on an 'AI bubble,' tariff concerns, and potential volatility stemming from another possible government shutdown, tariffs, and inflation, US stocks have largely brushed aside all these worries by the end of 2025."
Investors are currently within a historically strong seasonal window and are anticipating a potential "Santa Claus rally." This phenomenon typically occurs during the last five trading days of the year and the first two of the new year. Data from the Stock Trader's Almanac indicates that since 1950, the S&P 500 has averaged a gain of 1.3% during this period.
There is a broad consensus on Wall Street that the artificial intelligence (AI) boom and anticipated interest rate cuts from the Federal Reserve will propel the S&P 500's continued ascent, with corporate earnings growth also expected to support the market's upward trajectory. However, warnings persist that inflation, elevated valuations, and ongoing trade tensions could still trigger a market correction.
It is worth noting that in April of this year, following the announcement of the most significant tariff policies of President Trump's term, the Nasdaq briefly dipped into bear market territory, yet it managed to recover all losses and climb to new heights.
Even as market expectations for Fed rate cuts in the coming year have continued to cool, US stocks have maintained their upward momentum. Currently, fewer than 15% of traders are betting on a rate cut next month; market views on the Fed's potential policy moves in March are increasingly divided.
With a shortened trading week due to the holiday, the final stretch of the year lacks significant economic data releases or earnings reports from major companies.
Wall Street veteran Ed Yardeni has been one of the most optimistic market narrators of this decade and an early proponent of the "Roaring Twenties" thesis. He believes this era will be driven by economic resilience, robust corporate profits, and productivity gains linked to the digital revolution and artificial intelligence.
In a recent interview, Yardeni reiterated two of his key predictions: the S&P 500 reaching 7,700 by 2026 and achieving 10,000 by 2029. More strikingly, he presented a parallel forecast: the price of gold could also reach $10,000 per ounce by the end of this decade.
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