Stocks experienced minimal movement in a quiet trading session on Friday as investors returned from the Christmas holiday. This trading day falls within the traditionally strong period known as the Santa Claus Rally, which encompasses the final days of December and the early days of January. However, it is characterized by thin trading volumes.
As of noon EST, the S&P 500 index recorded a slight decline, dropping 8 points or 0.1%, bringing it to 6,923. Similarly, the Dow Jones Industrial Average fell by 0.2%, while the Nasdaq experienced a minor decrease of less than 0.1%.
The Santa Claus Rally, identified by market technician Yale Hirsch in 1972, spans the last five trading days of December and the first two of January. This year, the period commenced on December 24 and will conclude on January 5. Historical data indicates a significant trend during this time: since 1950, the S&P 500 has averaged a 1.3% gain, with positive returns occurring 78% of the time during this stretch. In contrast, the typical average return over any seven-day period is just 0.3%, with a positivity rate of 58%, according to Adam Turnquist, chief technical strategist at LPL Financial.
The stock market has seen a robust year overall, with the S&P 500 climbing nearly 18% since the beginning of 2025. This growth has been attributed to regulatory changes from the Trump administration as well as optimism surrounding the potential of artificial intelligence to enhance corporate profitability.
In the commodities market, gold and silver prices continued their upward trajectory, with silver surging over 4.5% to $74.88 an ounce, while gold rose by 1.1%. The climb in both precious metals can be linked to investors seeking safe-haven assets beyond stocks and bonds, alongside supply constraints that have particularly benefited silver. Mining company Freeport-McMoRan saw significant gains as part of this trend. Earlier increases in gold prices were fueled by concerns related to the U.S. government shutdown, and there are expectations that the U.S. Federal Reserve may further cut interest rates in the new year, which could weaken the dollar against other currencies and stimulate additional gold buying.
In company-specific news, shares of Target rose by 2% following a report from The Financial Times indicating that an activist investor is acquiring a stake in the retail giant. Meanwhile, U.S. crude oil prices saw a decline of more than 1%, with Brent crude following suit, dropping by 1%. Notably, markets in Hong Kong, Australia, New Zealand, and Indonesia were closed for trading, and most European markets also remained shut on this day.
