Stocks To Watch – 12/29/2025

Brief Overview

Welcome back to this week’s Stocks to Watch!

We hope you all had a Merry Christmas! We’re ready to get back to the action with another short week. The markets will be closed on Thursday again this week in observance of New Years Day. There are no companies reporting earnings and the Fed Calendar is very limited this week. 

Looking back at last week…

Monday: Holiday Week Starts Strong
Stocks kicked off the holiday-shortened week with gains. The S&P 500, Dow, and Nasdaq all moved higher as holiday optimism set in and investors eyed the seasonal Santa Claus rally period. Major indexes finished ahead of recent peaks, with some sector breadth showing broad participation.

Tuesday: Third Daily Gain in a Row
The positive trend continued for a third straight session as index momentum carried forward. The Dow, S&P 500, and Nasdaq all ticked up again, supported by strong performance from tech names and rising precious metal prices. Goldman and other cyclical sectors also helped underpin the rally’s breadth.

Wednesday: Record High Touches and Light Volume
With light trading ahead of Christmas, markets hovered near all-time highs again. Major indexes stayed elevated even as volumes thinned, a typical pattern this time of year. Investor focus stayed on year-end positioning and expectations for an upbeat start to 2026.

Thursday: Markets Closed for Christmas
U.S. markets were closed on Thursday for the Christmas holiday, leading to a pause in trading activity. This week is historically thin on data and volume, which can make price moves look bigger even when participation is light.

Friday: Post-Holiday Session Ends Near Highs
In the return from Christmas, markets traded quietly but remained near record levels. The S&P 500, Dow, and Nasdaq all finished close to flat for the session, following a solid run earlier in the week and maintaining gains for the short holiday stretch.

Key Takeaway:
It was a holiday-shortened week where the Santa Claus rally vibe took hold — stocks mostly climbed or held near highs despite thin volume and light catalysts. The S&P 500, Nasdaq, and Dow all extended their gains as 2025 winds down, keeping the door open for further upside in the early new-year trading window. With traders watching for fresh economic data and potential rate-cut signals after the break, sentiment remains constructive as we head into 2026.