U.S. stocks experienced a noteworthy uptick on Friday, breaking a recent losing streak amid signs of easing inflation and diminishing concerns over artificial intelligence worries. The S&P 500 rallied by 0.8%, while the tech-heavy Nasdaq Composite surged over 1.3%, building on an impressive rally from Thursday. Meanwhile, the Dow Jones Industrial Average rose 0.3%.
The late-week surge allowed both the S&P 500 and Nasdaq to secure weekly gains of 0.1% and 0.4%, respectively, in this final full trading week of 2025, as traders entertained hopes for a “Santa Claus rally” to close out the year. In contrast, the Dow suffered a weekly decline of 0.6%.
On the technology front, Oracle’s stock rose significantly after China’s ByteDance entered into agreements to establish a U.S. TikTok joint venture, contributing positively to market sentiment. Nvidia’s shares also experienced a boost, following a Reuters report indicating that the U.S. government is revisiting the possibility of allowing sales of its H200 chips to China.
In healthcare, nine pharmaceutical companies reached agreements with the Trump administration to lower drug prices for certain American consumers. In exchange, these companies received a three-year exemption from impending tariffs on their products.
Economically, investors processed a week filled with economic data, maintaining their outlook for potential interest rate cuts next year. Data on jobs and consumer inflation, though delayed, appeared to bolster hopes for ongoing easing from the Federal Reserve. Many traders remain optimistic, betting on at least two rate cuts in 2026. Market attention will soon turn to the University of Michigan’s final consumer sentiment reading for December, which showed the first increase in sentiment after several months of decline.
Market yields reflected a shift in sentiment, with the benchmark 10-year Treasury yield rising to 4.15% as global bond markets absorbed the Bank of Japan’s latest interest rate hike—the highest since 1995.
Decisions made by the NYSE and Nasdaq confirm that U.S. stock markets will remain open on both December 24 and December 26, despite a government closure called by President Trump for those days.
Amid this backdrop, the cruise industry also saw gains, driven by Carnival Cruise Line’s optimistic guidance. Carnival’s stock surged over 8%, as the company provided a strong outlook, citing resilient demand for cruises despite overall economic uncertainty.
Conversely, Nike’s shares dropped 9% due to challenges faced in the Chinese market and the impact of increased tariffs affecting profitability. Despite beating financial estimates for the quarter, concerns about long-term growth in the Greater China region continue to weigh on investor sentiment.
In the cryptocurrency space, Bitcoin remained stabilized around $87,000, trading within a narrow range. Analysts predict it may remain rangebound for the near term. Meanwhile, precious metals such as gold and silver approached record highs, buoyed by expectations of loose monetary policy conditions.
The latest developments indicate that U.S. stock markets are navigating a complex economic landscape, filled with both opportunities and challenges as 2025 draws to a close.
