The major index futures indicate a nearly unchanged opening on Friday, suggesting that stocks may exhibit a lack of direction following a series of upward trends in recent sessions. It is anticipated that numerous traders will refrain from engaging in market activities following the Christmas Day holiday on Thursday, resulting in trading volumes that are likely to be below average. Market participants might exhibit hesitation in executing substantial trades in the wake of the recent upward trajectory, which propelled the Dow and S&P 500 to unprecedented closing peaks. However, tech stocks may extend their recent surge, with shares of Micron Technology and SanDisk seeing significant pre-market strength. The recent upward momentum observed in the digital memory sector follows a report indicating that South Korea’s Samsung Electronics and SK Hynix have increased prices for fifth-generation high-bandwidth memory by nearly 20 percent for deliveries scheduled in 2026. In the coming week, it is anticipated that overall trading activity could exhibit a degree of subduedness, influenced by the New Year’s Day holiday occurring on Thursday. Weekly jobless claims and pending home sales reports are likely to capture interest, alongside the minutes from the most recent Federal Reserve monetary policy meeting.
Equities exhibited a degree of indecision at the outset of the session, yet trended predominantly upward as the trading day progressed on Wednesday. The major averages have prolonged their winning streak to five consecutive days, as both the Dow and the S&P 500 achieved new record closing highs. The principal indices concluded the trading day slightly below their session peaks. The Dow increased by 288.75 points, representing a 0.6 percent rise, reaching 48,731.16. The Nasdaq experienced a gain of 51.46 points, or 0.2 percent, closing at 23,613.31. Meanwhile, the S&P 500 saw an uptick of 22.26 points, equivalent to a 0.3 percent increase, finishing at 6,932.05. The recent strength observed appears to be indicative of upward momentum, as Chris Zaccarelli, remarked that the “path of least resistance is higher until the end of the year.”
Overall trading activity exhibited a degree of subduedness, as numerous traders were absent from their desks in anticipation of the Christmas Day holiday on Thursday. The markets will observe a closure on Thursday and will have an earlier closing time this afternoon in recognition of Christmas Eve. On the U.S. economic front, the Labor Department released a report indicating that first-time claims for unemployment benefits in the U.S. decreased more than anticipated in the week ending December 20th. The report indicated that initial jobless claims fell to 214,000, reflecting a decline of 10,000 from the prior week’s unrevised figure of 224,000. Jobless claims were anticipated by economists to decrease to 223,000.
“Despite ongoing seasonal volatility, initial jobless claims remain in a range consistent with relatively steady labor market conditions and don’t change our outlook for the labor market or Fed policy,” stated Nancy Vanden Houten. Despite the broader markets trending upwards throughout the session, the majority of major sectors exhibited only slight movements. Housing and banking stocks exhibited some resilience during the day, whereas gold and oil service stocks experienced a decline.