Key Points
- U.S. stock markets remained flat on Friday after the Christmas holiday.
- Low trading volume and thin liquidity kept the major indexes from moving.
- The S&P 500 recently reached a record high, driven by strong 4.3% economic growth.
- AI optimism continues to drive tech stocks following big news from Micron and OpenAI.
Wall Street started Friday morning with very little movement. After taking a day off for Christmas, investors returned to a market that felt unusually calm. Trading volumes were very low because many professional traders and big investment firms are still away for the holidays. With many European and Asian markets also closed, there simply wasn’t enough activity to move the major indexes in either direction.
As of 10:38 AM ET, U.S. equity markets are trading in a narrow, positive range during a low-volume post-holiday session. The S&P 500 has edged up to 6,936.94 (+0.07%), briefly touching record territory as it sustains a year-end “Santa Claus rally.” The tech-heavy Nasdaq 100 remains relatively flat at 25,667.51 (+0.04%), reflecting continued AI momentum and cautious sentiment about future capital expenditures. Meanwhile, the Dow 30 is up modestly at 48,741.28 (+0.02%).
This quiet session follows a very busy start to the week, during which the S&P 500 hit a new record high. That surge happened because people are feeling great about the American economy and the future of artificial intelligence.
Earlier this week, the government reported that the U.S. economy grew at a 4.3% annualized rate in the third quarter. That is the fastest growth we have seen in two years, and it makes people think the economy can stay strong for a long time.
At the same time, tech stocks got a big boost. A strong earnings report from chipmaker Micron and rumors that OpenAI is seeking to raise $100 billion have kept the AI hype alive.
Many investors are also looking ahead to 2026. Even though the economy is currently growing fast, many traders still believe the Federal Reserve will eventually lower interest rates. This combination of economic growth and the potential for lower borrowing costs has kept the market in a good mood.
As we head into the final days of the year, people are watching for the famous “Santa Claus rally.” This is a seasonal trend where stocks often rise during the last week of December and the first few days of January. While today was quiet, the overall sentiment remains positive. Investors will spend the next few days adjusting their portfolios and preparing for the new year.
