U.S. equities finished Wednesday’s session at record levels, with both the S&P 500 and the Dow Jones Industrial Average posting all-time closing highs. Trading volumes were thin due to the shortened Christmas Eve session, while gold hovered just below the $4,500 mark.
All three major U.S. stock indexes ended the day higher, with the S&P 500 now on track to deliver an annual gain of nearly 18%. Treasury yields declined, while gold and silver eased slightly after recently touching record levels. On a yearly basis, gold and silver remain firmly higher, up roughly 70% and 150% respectively.
“It’s been a strong year for equities across the board, and global markets have largely followed the same trend,” said Peter Cardillo, chief market economist at Spartan Capital Securities. “Precious metals, in particular, have delivered an exceptional performance.”
Jobs data fuels rate cut expectations
Fresh U.S. economic data added to expectations for further monetary easing. Initial jobless claims unexpectedly fell 4.5% last week, while continuing claims rose 2.0% to 1.923 million. The mixed data echoed recent consumer surveys pointing to weakening confidence in the labor market.
The figures reinforced the view that the U.S. Federal Reserve may have room to lower interest rates next year. Cardillo said he expects two rate cuts in 2026, arguing that underlying labor market conditions appear weaker than headline numbers suggest.
Wall Street closes higher, global stocks mixed
The Dow Jones Industrial Average climbed 289 points, or 0.6%, to 48,731.81. The S&P 500 gained 22 points, or 0.3%, to close at 6,932.13, while the Nasdaq Composite added 51 points, or 0.2%, finishing at 23,613.31.
European markets also closed early for the holidays, ending the shortened week near record levels. The region is on pace for its strongest annual performance since 2021, supported by easing interest rate expectations.
MSCI’s global equity index rose 0.24% to 1,022.51. Emerging market stocks gained 0.41%, while Asia-Pacific shares outside Japan ended modestly higher. Japan’s Nikkei, however, slipped 0.14%.
Treasury yields retreat after data
U.S. Treasury yields moved lower following the labor market data. The benchmark 10-year yield fell to 4.136%, while the 30-year bond yield declined to 4.7948%. The two-year yield, which closely tracks interest rate expectations, slipped to 3.51%.
Dollar steady as traders monitor yen
In currency markets, the U.S. dollar traded in a narrow range and remained on course for its largest annual decline since 2017. Investors continued to price in the possibility of further Fed easing in 2026.
Currency traders remained focused on the Japanese yen, amid ongoing speculation that Japanese authorities could step in to curb excessive moves. The dollar index edged up 0.1% to 98.00, while the euro dipped to $1.1773.
Commodities ease after recent gains
Oil prices gave up earlier gains as geopolitical concerns eased, leaving crude on track for its steepest annual decline in five years. U.S. crude traded flat at $58.36 a barrel, while Brent slipped 0.21% to $62.25.
Gold pulled back slightly after breaking above $4,500 an ounce for the first time. Spot gold fell 0.17% to $4,480.23 an ounce, while U.S. gold futures edged 0.01% higher to $4,483.40.
