U.S. equities defied early caution to close higher across the board on Wednesday, December 24, 2025, with the Dow Jones Industrial Average and the S&P 500 both setting fresh record highs in a shortened holiday trading session.
Markets closed at 1:00 p.m. ET ahead of Christmas Day, with light volumes typical of the festive period. Despite the muted activity, buying momentum strengthened through the session, extending what traders often refer to as the “Santa Claus rally”.
The Dow Jones Industrial Average rose about 0.6% to close at roughly 48,731, marking a new all-time high. The S&P 500 gained around 0.32% to finish near 6,932, also at a record level. The Nasdaq Composite advanced 0.22% to close at 23,613, supported by steady gains in large-cap technology stocks.
Market participants pointed to a mix of optimism around the 2026 economic outlook and easing financial conditions. Investors continue to price in the likelihood of Federal Reserve interest rate cuts next year, even as expectations for an immediate reduction at the January policy meeting have softened in recent weeks.
The rally came despite thin trading volumes, a factor that can exaggerate price movements during holiday sessions. Still, analysts noted that the ability of equities to push to record levels under low-volume conditions reflects underlying confidence in corporate earnings resilience and a soft-landing narrative for the U.S. economy.
U.S. financial markets are closed on Thursday, December 25, for the Christmas Day holiday and are scheduled to reopen on a normal trading schedule on Friday, December 26, 2025.
