Stock market news for Dec. 23, 2025

Stocks rose for a fourth straight session on Tuesday, as artificial intelligence names continued to outperform during a holiday-shortened week.

The S&P 500 added 0.46%, closing at a record level of 6,909.79. The broad market index is now just below its intraday all-time high of 6,920.34.

The Nasdaq Composite climbed 0.57% to end at 23,561.84. Gains in tech giants Nvidia and Broadcomwhich rose around 3% and more than 2%, respectively, lifted the index. The Dow Jones Industrial Average rose 79.73 points, or 0.16%, and settled at 48,442.41.

Traders continued to bet the Federal Reserve will lower its benchmark rate next year, even after the release of new economic data that came in well above expectations. The Commerce Department reported that the U.S. economy expanded at a 4.3% pace in the third quarter, much better than the 3.2% estimate that economists polled by Dow Jones had forecast.

The report — which was postponed from its planned release date of Oct. 30 because of the record-breaking U.S. government shutdown – initially spooked investors into believing an interest rate cut from the Federal Reserve in early 2026 is less likely. Stocks began the trading day slightly lower but later recovered.

Fed funds futures traders are still pricing in two rate cuts by the end of next year, the CME FedWatch Tool showed.

“We may not see the market back out of those two rate cuts right now,” said Eric Sterner, chief investment officer at Apollon Wealth Management. “The odds of a rate cut early in the year are probably lower, but we’re soon going to find out who’s Trump’s nomination for the new Fed chair, and it’s almost certainly going to be someone who’s a bit more dovish than Powell.”

The New York Stock Exchange will close early on Wednesday at 1 p.m. ET on Christmas Eve and will be closed Thursday for Christmas Day.

Correction: A previous version misspelled Apollon Wealth Management’s name.