As the calendar flips from 2025 to 2026, Wall Street is gearing up for a subdued and abbreviated trading week, offering a calm finale to a year that has been anything but for investors. With New Year's Day leading to a market closure, only three full trading sessions remain to cap off a period defined by significant volatility.
A Year of Ups and Downs on Wall Street
Investors have been taken on a wild ride throughout 2025. The financial landscape was shaped by multiple forces, including anxieties over potential Trump-era tariffs, ongoing geopolitical tensions, and the explosive rally in stocks related to artificial intelligence. Despite this rollercoaster, the benchmark S&P 500 index is poised to close the year with double-digit percentage gains, a testament to the market's resilience amid the turbulence.
The previous week saw US stocks closing marginally lower in quiet post-Christmas trading. The S&P 500 dipped less than 0.1% to 6,929.94, while the Dow Jones Industrial Average also fell less than 0.1% to 48,710.97. The Nasdaq composite dropped 0.1% to 23,593.10. For the week, however, major indices posted gains, with the S&P 500 rising 1.4%.
Holiday-Shortened Week: Data and Fed Minutes in Focus
The upcoming week's economic calendar is relatively light, with no scheduled speeches from Federal Reserve officials. However, a few key reports and one critical document will capture attention. The minutes from the Federal Reserve's December monetary policy committee (MPC) meeting will be published on Tuesday, December 30, offering deeper insights into the central bank's thinking on interest rates and the economy.
On the data front, the week will see the release of pending home sales for November on Monday, December 29. Tuesday brings the S&P Case-Shiller home price index for 20 cities (October data) and the Chicago Business Barometer (PMI) for December. The weekly report on initial jobless claims is due on Wednesday, December 31. Markets will be closed on Thursday, January 1, for the New Year's holiday, with nothing scheduled for Friday, January 2.
Commodities and Corporate Earnings
In other markets, the search for safe-haven assets continued to benefit precious metals. Silver prices surged nearly 8% last week to $77.20 an ounce, driven by both investor demand and supply constraints. Gold also rose by 1.1%. In the bond market, the yield on the benchmark 10-year Treasury note eased to 4.13%.
The earnings season continues at a trickle, with a handful of companies set to report their third-quarter results. Lifecore Biomedical, Taylor Devices, and Hurco are among the firms on the docket for the week ahead.
As trading volume is expected to remain thin in this holiday period, the week will likely provide a moment of pause for investors to reflect on a tumultuous 2025 and look ahead to the opportunities and challenges of 2026.
