Markets Hit Records on Christmas Eve as Fear Gauge Drops to Year-Low
MarketDash
The S&P 500 notched fresh all-time highs in a sleepy Christmas Eve session, while the VIX volatility index slipped to its lowest reading in over a year. Banks surged to records, precious metals took a breather, and Bitcoin continued its rough year.
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Nothing says holiday cheer quite like fresh stock market records, and Wall Street delivered exactly that on Christmas Eve. The S&P 500 pushed past 6,920 points in what was essentially a half-day of trading, gaining 0.2% and extending its winning streak to five sessions. That brings the benchmark index's year-to-date performance to a respectable 17%, which is the kind of gift investors actually want to unwrap.
Other major indexes joined the party with modest gains, though trading volumes were predictably thin as most of the financial world prepared to dive into holiday festivities. The rally sets up an interesting final week of the year, a period that historically tends to favor bulls thanks to the so-called Santa Claus rally phenomenon.
Perhaps more telling than the new highs was what happened to the market's fear gauge. The CBOE Volatility Index, better known as the VIX, dropped to 13.7, marking its lowest reading since mid-December 2024. When the VIX is falling while stocks are rising, it generally means investors are feeling pretty comfortable about the state of things.
The Winners and Losers
Among the S&P 500's top performers, Sandisk Corp (SNDK) and Nike Inc. (NKE) both jumped roughly 5%. Nike got an interesting boost after Apple Inc. (AAPL) CEO Tim Cook disclosed he'd purchased 50,000 shares at $58.97 each. When one of the world's most prominent CEOs buys that kind of chunk, people notice.
Micron Technology Inc. (MU) continued its post-earnings tear, adding another 4% and extending its rally to 27% over just five sessions. That's the kind of momentum that gets traders excited.
The banking sector deserves special mention here. Citigroup Inc. (C) notched its sixth straight gain, marking an impressive sixteenth advance in the past seventeen sessions while hitting new all-time highs. If you're keeping score at home, that's the kind of run that separates great years from merely good ones.
After what can only be described as a relentless rally, precious metals finally caught their breath. Gold slipped 0.4% after touching an intraday all-time high of $4,525 per ounce. Silver fell 0.8% after hitting record territory at $72.69. Platinum took the biggest hit, sinking 4.7% after eleven consecutive sessions of gains.
These pullbacks aren't exactly alarming when you consider the run these metals have been on. Sometimes even the strongest trends need a pause to consolidate gains.
Bitcoin's Difficult Year Continues
The crypto markets remained decidedly unenthusiastic. Bitcoin (BTC) slid 0.9% lower to around $87,000, continuing what has been a challenging year for the world's largest cryptocurrency. Bitcoin is down roughly 7% year to date and is currently on track for its worst annual performance since 2022.
That's a stark contrast to the triumphant narrative that many crypto enthusiasts expected heading into this year. Sometimes the market has other plans.
Wednesday's Performance In Major US Indices, ETFs
Major Indices
Price
%
Dow Jones
48,699.28
0.5%
S&P 500
6,930.94
0.3%
Nasdaq 100
25,612.96
0.1%
Russell 2000
2,544.11
0.1%
Updated by 10:45 a.m. ET
Looking at the major ETFs that track these indexes, the picture was uniformly positive if not exactly explosive. The Vanguard S&P 500 ETF rose 0.2% to $633.80. The SPDR Dow Jones Industrial Average ETF gained 0.4% to $486.07. The tech-heavy Invesco QQQ Trust Series inched up 0.1% to $622.67. And the iShares Russell 2000 ETF traded at $252.30, up 0.1%.
These are the kinds of steady, grinding gains that add up over time, especially when they come in five-day winning streaks.
As markets head into the Christmas holiday and the final trading days of the year, the setup looks reasonably constructive. Low volatility, rising indexes, and strong performance from major financial institutions all suggest investors are feeling confident as they close out what has been, by most measures, a solid year for equities.
