S&P 500, Dow Hit Records; Nasdaq Rises Amid Holiday Trading; Key Movers: Nvidia, Tesla, Nike
The S&P 500 achieved a historic milestone on Christmas Eve, recording its first all-time high since 2013. This trading day was notably calm yet productive, with the S&P 500 rising by 0.3%. The Dow Jones Industrial Average also soared by 288 points, or 0.6%, closing at a fresh record. Meanwhile, the Nasdaq Composite saw a modest increase of 0.2%.
S&P 500 and Dow Jones Records
The CBOE Volatility Index, known as the VIX, ended the day below 14 for the first time since December 2025. Investors experienced the kind of positive trading session one hopes for on Christmas Eve. Historically, the S&P 500 has not closed at a record high on this date since 2013, despite significant overall gains in recent years.
Yearly Performance Comparisons
- The S&P 500 has appreciated by 18% in 2023.
- In contrast, it surged by 30% in 2013.
- Previous years with similar performance include 2017, 2018, 2021, 2023, and 2024, where gains exceeded 19%.
Despite the robust stock market performance, the S&P 500 struggled to close at a record high in those years. The question remains: what made this year distinct?
Contributing Factors to Market Success
Several factors may have influenced this year’s positive outcomes. A challenging November may have prompted strategic dip-buying in December. Additionally, investors appear comfortable balancing investments between artificial intelligence and major tech firms, while also considering stocks that benefit from a robust economy following impressive GDP reports.
Key ETFs Performance
- State Street SPDR S&P Retail ETF: increased by 1%
- State Street Financial Select Sector SPDR ETF: rose by 0.5%
Overall, market conditions look optimistic heading into the holiday season. Economic growth and rising profits, coupled with low volatility, have contributed to a favorable investment climate as Christmas approaches.
