Major U.S. stock indexes climbed Friday and pointed to further gains Sunday evening, with markets wrapping up a week marked by significant sector rotation and macroeconomic data releases that have kept investors active ahead of year-end. The S&P 500 rose about 0.9%, the Nasdaq Composite gained roughly 1.3% and the Dow Jones Industrial Average added around 0.4% on Friday, lifting most benchmarks higher for the week despite lingering volatility earlier in the session. The technology and AI sectors — led by names such as Nvidia (NVDA) — helped underpin the rally, while defensive and cyclical names also found support as traders balanced risk sentiment.
The week’s market action reflected a broader tug-of-war between optimism around cooler inflation prints and concerns over structural growth cues. A delayed November Consumer Price Index (CPI) report that showed inflation rising less than expected helped break four-session losing streaks for the Dow and S&P 500 earlier in the week, reinforcing the view among investors that the Federal Reserve may be finished hiking rates and positioning for cuts in 2026.
Asian and European markets moved in line with the positive sentiment, with Tokyo and Seoul bourses posting gains and European futures pointing to a firm start, though select regional indices showed mixed performance. China’s markets have lagged recent regional strength, weighed down by weak economic data and waning investor confidence, a contrast to broader Asian outperformance.
Across asset classes, gold recently hit historic price levels as investors sought safe havens amid macro uncertainty, even as bullion saw slight corrections as the holiday week thins liquidity.
Market participants are now focused on the truncated holiday trading week, with typical year-end flows such as the so-called Santa Claus rally in focus — a seasonal phenomenon where stocks often gain in the final trading days of December and early January.
