Broad-Based Gains Carry Stocks Higher as Holiday Week Gets Underway

U.S. equities opened Christmas week with a steady, broadly supported advance, as the major indices traded in a relatively tight range and finished the session with solid gains. The S&P 500 rose 0.6%, while the Nasdaq Composite and Dow Jones Industrial Average each added 0.5%. Smaller-cap stocks outperformed, with the Russell 2000 climbing 1.2% and the S&P MidCap 400 gaining 0.9%.

Market participation was notably healthy, with ten S&P 500 sectors finishing higher and four advancing by more than 1.0%. Materials led the way, up 1.4%, as gold and silver prices surged to fresh record highs. Strength in precious metals lifted mining stocks, with Newmont and Freeport-McMoRan among the top performers.

Energy stocks also moved higher after oil prices jumped on reports that the U.S. is pursuing a third sanctioned tanker off the coast of Venezuela. Crude oil futures settled 2.7% higher at $58.03 per barrel, helping the energy sector close up 1.1%. Financials gained 1.3%, supported by advances across major banks and investment managers, while aerospace and defense names pushed the industrials sector up 1.1%.

Technology stocks posted a more modest gain of 0.4%, but the sector’s resilience highlighted lingering optimism around the AI trade. Chipmakers provided support, lifting the PHLX Semiconductor Index by 1.1%. NVIDIA traded higher after reports that it plans to begin shipments of its H200 chips to China by mid-February. Micron extended its post-earnings rally, and First Solar finished as the best-performing stock in the S&P 500.

The only sector to close lower was consumer staples, down 0.4%, continuing its recent underperformance amid renewed investor appetite for growth-oriented areas of the market.

Corporate headlines also drew attention, as Paramount Skydance again featured prominently in takeover-related news. The company amended its $30-per-share all-cash bid for Warner Bros. Discovery to include an irrevocable personal guarantee of $40.4 billion in equity financing from Larry Ellison, adding a new layer of credibility to its proposal.

There was no major economic data released, and Fed commentary had little influence on rate-cut expectations. Fed Governor Stephen Miran reiterated that additional rate cuts may be needed to avoid recession risks, while Cleveland Fed President Beth Hammack suggested rates should remain unchanged for several months.

Overall, the session unfolded quietly, which was to be expected in a holiday-shortened week. While the gains were not as explosive as last week’s tech-led rally, the market advanced on broad strength, leaving the S&P 500 just shy of another record high as the year winds down.

Our FTinvest 11 model portfolio closed the day at 925.92, marking a modest gain of 0.04%. While the portfolio remains just shy of its all-time high of 937.19, today’s positive close reflects continued resilience despite broader market noise. The current level keeps FTinvest 11 firmly in a strong uptrend for the year, with its performance continuing to benefit from disciplined value-oriented positioning and selective cash management.

Meanwhile, market sentiment appears cautiously optimistic heading into year-end, even as recent data shows slowing business activity growth and softer macro momentum. In this context, FTinvest 11’s ability to hold near record levels underscores the strength of its fundamental thesis and measured risk exposure. While the portfolio slightly lagged the index today, its year-to-date lead remains substantial.