U.S. stocks remain at record levels in calm trading following the Christmas holiday

Market Overview

Stocks remained largely unchanged on Friday as investors came back from the Christmas holiday. This day falls within the traditional seven-day Santa Claus Rally, a time known for strong stock performance from late December into early January, although trading activity is typically low.

As of midday ET, the S&P 500 was down by 8 points, or 0.1%, sitting at 6,923. The Dow Jones Industrial Average saw a slight decline of 0.2%, and the Nasdaq dipped just below 0.1%.

The Santa Claus Rally spans the last five trading days of December and the first two of January. Market analyst Yale Hirsch first recognized this trend back in 1972. For this year, the rally starts on December 24 and wraps up on January 5.

“Historical data illustrates a consistent trend: since 1950, the average return for the S&P 500 during this timeframe has been 1.3%, with positive returns 78% of the time,” noted Adam Turnquist, chief technical strategist at LPL Financial, in a research note from December 23.

Turnquist further mentioned, “In contrast, the average return for the typical seven-day period is just 0.3% with a positive rate of 58%.”

Gold and Silver Prices

This year, the stock market has shown significant strength, with the S&P 500 up nearly 18% in 2025. Investor sentiment is being supported by the Trump administration’s deregulation efforts and a growing belief that artificial intelligence might enhance corporate earnings.

Gold and silver prices saw continued upward movement, with silver increasing by more than 4.5%, reaching $74.88 per ounce, while gold rose by 1.1%. Supply limitations have fueled silver’s rise as investors look for safer alternatives to stocks and bonds. Mining stocks, like Freeport-McMoRan, were among the major winners on Friday.

Previous climbs in gold prices were in part linked to concerns surrounding the U.S. government shutdown. There are also expectations that the Federal Reserve may further lower interest rates in the upcoming year, along with predictions of a declining dollar against other currencies, contributing to increased gold purchases.

In corporate news, Target’s shares climbed 2% following a report from the Financial Times that an activist investor was acquiring a stake in the company. Meanwhile, U.S. crude oil prices fell over 1%, and Brent crude experienced a similar drop.