Holiday Calm Lifts Stocks to Fresh Records in Light Christmas Eve Trade

U.S. equities wrapped up a quiet but positive Christmas Eve session with broad-based gains, nudging major indices to new record levels despite thin holiday trading.

The S&P 500 advanced 0.3%, setting fresh intraday and closing highs at 6,937.32 and 6,932.05, respectively. The Dow Jones Industrial Average outperformed, climbing 0.6% to finish at a record 48,731.16. Technology shares were more subdued, leaving the Nasdaq Composite with a modest 0.2% gain.

Market participation was constructive, with ten of the eleven S&P 500 sectors ending the day higher, though most moves were contained. Defensive areas led the way, as consumer staples rose 0.8%, utilities gained 0.6%, and health care added 0.5%. Costco stood out within staples, jumping 2.0% after receiving an upgrade to Buy from Northcoast Research, which set a $1,100 price target on the shares.

Financials continued to build on recent strength, rising 0.5% as bank stocks held their upward momentum. Real estate also enjoyed a solid session, advancing 0.7%.

Momentum in mega-cap growth stocks cooled after the prior day’s rally. The Vanguard Mega Cap Growth ETF edged up just 0.2%, while NVIDIA slipped slightly, giving back a portion of its recent gains. Tesla and Alphabet ended the session essentially unchanged. The information technology sector finished marginally higher, supported by Micron, which surged nearly 4% as its post-earnings rally extended.

Energy was the lone decliner among the major sectors, slipping 0.3%.

Corporate news was limited amid the holiday-shortened session, though Nike shares rallied 4.7% after disclosures showed Apple CEO Tim Cook, a Nike board member, purchased roughly $3 million worth of company stock.

Despite subdued activity and light volume, U.S. equity markets remain firmly positioned near record highs heading into the final days of the year, supported by a steadily improving broader trend.

U.S. markets will be closed on Wednesday in observance of the Christmas holiday.

In the bond market, Treasuries strengthened following a well-received $44 billion seven-year note auction. Yields declined across the curve, with the two-year yield down two basis points to 3.51% and the ten-year yield falling four basis points to 4.13%.

Our FTinvest 11 model portfolio closed the day at 929.16, rising 0.23%. The portfolio continues its steady climb and remains within close range of its all-time high of 937.19. This sustained strength highlights the effectiveness of the portfolio’s disciplined, value-driven strategy, even in a seasonally quieter trading environment. Despite today’s muted activity, FTinvest 11 maintained its positive momentum and outpaced the broader index’s intraday move, further solidifying its strong year-to-date standing.