December 24, 2025
S&P 500 Futures are off 0.09% this morning. Initial and continuing claims are on the docket this morning after yesterday’s record close.
U.S. equities finished mostly higher (Dow +0.16% | S&P 500 +0.46% | Nasdaq +0.57% | Russell 2000 −0.69%) in very quiet, low-volume holiday trading, with the S&P 500 closing at a fresh record high. Leadership was narrow: the cap-weighted S&P outperformed the equal-weight index by more than 60 bp as mega-cap tech—led by NVIDIA—carried the tape, while breadth was negative. Small caps, most-shorted names, and retail-investor favorites lagged.
Rates and macro data nudged expectations in a slightly more hawkish direction. The curve flattened as front-end Treasury yields rose 2–3 bp, and futures now price only ~41 bp of Fed cuts through end-2026 (down ~10 bp over the past two sessions). The dollar fell 0.3%, gold rose another 0.8% to a record above $4,500/oz, and WTI crude gained 0.6% after late Venezuela-related headlines. Bitcoin futures slipped modestly.
Economic data delivered mixed signals. Hard data surprised to the upside—Q3 GDP printed 4.3% vs. 3.0% consensus, with strong consumption—while soft data disappointed (Consumer Confidence, Richmond Fed). Inflation details were firmer than expected (GDP price index 3.7%), reinforcing caution on the policy path. Treasury supply remained an overhang: the $70B 5-year auction tailed slightly, following Monday’s weak 2-year sale. Despite the noise, the broader bullish narrative remains intact—AI enthusiasm, positive seasonality, cleaner positioning, M&A tailwinds, and expectations for solid earnings growth into 2026—with Venezuela tensions a lingering geopolitical focus.
Sector Highlights
Leadership remained narrow and tech-driven. Technology (+0.95%) and Communication Services (+0.99%) led on mega-cap strength, while Energy (+0.64%) benefited from crude’s late rebound. Consumer Staples (−0.41%) and Healthcare (−0.19%) lagged, and Industrials (−0.05%) and Real Estate (−0.02%) were little changed. Overall participation was thin, reflecting the holiday backdrop, with gains concentrated in a small group of large-cap leaders
Information Technology
- NVIDIA (NVDA) reorganized its cloud division, stepping back from direct competition with hyperscalers; reports also highlighted ByteDance purchasing H200 chips as part of a ~$23B AI capex plan.
- ServiceNow (NOW) agreed to acquire Armis for $7.75B in cash, with closing expected in 2H-2026.
- SEI Investments (SEIC) was upgraded on accelerating sales momentum and margin upside potential.
Communication Services
- Warner Bros. Discovery (WBD) said it will formally review Skydance Media / Paramount’s proposal after Larry Ellison guaranteed ~$40B of financing; a major shareholder reiterated concerns about valuation.
Health Care
- Novo Nordisk (NVO) surged after the FDA approved the first oral GLP-1 version of Wegovy, expanding obesity and cardiovascular risk indications.
- Johnson & Johnson (JNJ) was hit with a record $1.5B punitive damages verdict in a talc-asbestos mesothelioma case.
Energy
- Sable Offshore (SOC) jumped after U.S. regulators approved its plan to restart the Las Flores Pipeline System, shut since 2015.
- Energy equities broadly outperformed alongside firmer crude prices following Venezuela-related developments.
Industrials
- ZIM Integrated Shipping Services (ZIM) rose after its board confirmed receipt of multiple strategic acquisition proposals and ongoing evaluation.
- Lockheed Martin (LMT) faced negative headlines after a Pentagon watchdog report criticized F-35 maintenance oversight.
Financials
- Ares Management (ARES) CEO said the firm is prepared to pursue a large PE acquisition to strengthen its LBO platform.
Consumer Staples
- Coty (COTY) fell after multiple analyst downgrades tied to CEO Sue Nabi’s departure and leadership uncertainty.
Eco Data Releases | Wednesday December 24th, 2025
S&P 500 Constituent Earnings Announcements | Wednesday December 24th, 2025
No constituents report today
Data sourced from FactSet Research Systems Inc.
