Stocks Hit Record Highs; Precious Metals Rise Ahead of Year-End

December 23, 2025 — Updated December 24, 2025 16:41 UTC

Market snapshot

A relatively quiet Wall Street session ahead of Christmas saw stocks reach all-time highs while precious metals advanced. Key market dynamics included a resilient labor market signal and markedly lower trading volume: overall equity volume was almost 50% below the average of the past month. Bonds and the U.S. dollar showed mixed moves and lacked a clear directional trend.

Key, quotable takeaways

• "Stocks hit all-time highs as traders priced in a soft economic landing."
• "The jobs market is not quickly deteriorating, supporting risk-on positioning."
• "Equity volume was almost 50% below its one-month average, reflecting holiday-thin liquidity."

Equities

The S&P 500 rose at the start of the traditional Santa Claus Rally window — defined as the last five trading sessions of the year and the first two sessions of the new year. That early lift in risk appetite coincided with ongoing signals from labor-market data that the jobs situation is stabilizing rather than deteriorating rapidly, which market participants interpreted as increasing the probability of a soft landing rather than a sharp downturn.

Market characteristics to note:

• All-time highs in major U.S. equity benchmarks signaled continued investor demand for risk assets.
• Trading volume was materially lower: volume was almost 50% below the average of the past month, a factor that can amplify intraday moves and widen bid-ask spreads during holiday sessions.
• Holiday-thinned markets tend to be more sensitive to headline-driven flows; traders should account for reduced liquidity when sizing positions.

Fixed income and FX

Bonds and the U.S. dollar "wavered" during the session, with neither market establishing a durable trend. That mixed behavior is consistent with a market balancing a still-robust jobs backdrop against expectations for future monetary policy moves.

Implications:

• Range-bound sovereign yields may reflect uncertainty about the pace of policy easing or tightening in the months ahead.
• A waffling dollar typically benefits non-dollar assets and can contribute to upward pressure on commodities and precious metals.

Precious metals

Precious metals advanced in the session, contributing to a more risk-tolerant tone for parts of the commodity complex. Given the holiday and low liquidity environment, intraday gains in metals can occur quickly as traders rotate positions.

Traders and analysts should note:

• Precious metals often respond to dollar weakness and shifts in real yields; in a session where the dollar wavered, metals found support.
• Position sizing and stop placement matter when volume is depressed by nearly half relative to monthly norms.

Market structure and trading considerations

Holiday-thin liquidity was the single most actionable market structure signal of the day: volume nearly 50% below the past-month average. For professional traders and institutional desks, that has several consequences:

• Execution risk increases: large orders can move prices more than in normal-volume sessions.
• Volatility can be idiosyncratic: headline reactions and repositioning can create rapid, shallow moves that reverse when normal liquidity returns.
• Risk management should be tightened: consider narrower position sizes, wider stop-loss buffers, and the use of limit orders rather than market orders.

What to watch next

• Santa Claus Rally window: The S&P 500's early rise marks the beginning of the Santa Claus Rally period (last five trading days of the year plus the first two of the new year). Monitor whether the rally broadens beyond headline indices or remains concentrated in a handful of large-cap names.
• Labor market updates or any surprise economic prints before year-end that could shift expectations about monetary policy.
• Liquidity restoration in early January, which can lead to trend continuation or rapid reversals as market participation normalizes.

Tickers and positioning

Tickers included in this wrap: PM, UTCA. These tickers are highlighted for readers tracking the session; incorporate ticker-level liquidity and spreads into any trade planning because lower market-wide volume can widen spreads on individual names.

Practical implications for institutional investors and traders

• Reassess short-term exposure: If exposure was increased into the holiday, review whether that sizing is appropriate given the decreased liquidity backdrop.
• Use options or hedging strategies where appropriate to define downside risk while leaving upside participation.
• Prepare for potential reversals in early January when institutional flow returns and trading volumes normalize.

Bottom line

The pre-Christmas session delivered record equity highs and gains in precious metals amid a jobs picture that market participants view as stable rather than deteriorating. The defining market structure theme was low liquidity — volume nearly 50% below its one-month average — which increases execution risk and the potential for volatile intraday moves. Bonds and the dollar showed no clear directional bias, leaving cross-asset responses dependent on incoming data and early-January flow dynamics.

Tickers in this wrap: PM, UTCA.