Financial insights for the week ending December 26, 2025
For the week ending December 26, 2025, the S&P 500 rose 1.4%, the Nasdaq Composite increased 1.2%, the Dow Jones Industrial Average gained 1.2%, and the Russell 2000 inched up 0.6%.
This week saw the start of the typical Santa Claus Rally period, and despite the low holiday trading volumes, the markets held quite firm. Early week momentum was supported by a final look at third quarter economic growth, which confirmed the economy continues to move at a healthy pace. This data has helped solidify the soft-landing narrative that drove much of the market’s confidence throughout the year. While technology names continue to lead, we are seeing a notable move into materials, financials, and other cyclical areas as investors diversify their positions heading into 2026.
We expect trading to stay relatively quiet through the coming week as most institutional desks remain thinned out for the holidays. While low liquidity can lead to some uneven or exaggerated price swings, the broader takeaway from 2025 remains the market’s underlying resilience in the face of shifting interest rates. We expect this calm environment to persist for a few more days until the full weight of the market returns in early January. In the meantime, any short-term volatility should be viewed as seasonal positioning rather than a shift in economic fundamentals.
As we look toward the new year, we often find it helpful to use this seasonal lull for some quick financial housekeeping. We recommend a quick audit of recurring expenses to clear out any subscription creep from the past year, as it is a simple way to free up cash flow that can be better used elsewhere. On that note, the IRS recently announced that the IRA contribution limit is increasing to $7,500 for 2026, or $8,600 for those age 50 or older. Making a small, automated adjustment to monthly contributions now is a great way to ensure these new targets are met before the busyness of the year truly takes over.
Enjoy your day! Come back next Saturday for our latest commentary. We are here to answer any of your financial questions.