US stock markets took a breather on Friday, hovering close to their all-time peaks in a low-volume trading day following the Christmas holiday. The three major indexes oscillated between minor gains and losses, consolidating after a powerful five-day rally that had propelled the S&P 500 and the Dow Jones to historic closing levels.
Market Takes a Pause After Record Run
Market strategists viewed the subdued activity as a natural consolidation phase. Ryan Detrick, chief market strategist at Carson Group, noted, "We had a very strong five-day rally, so in a way we're just simply catching our breath today after the holiday." He pointed to the ongoing "Santa Claus rally" period, which spans the last five trading days of the year and the first two of the new year, suggesting a potential for more upward movement ahead. Historically, a strong performance during this period is seen as a positive indicator for stock performance in the coming year.
Individual Stocks in Focus: Nvidia and Target
While the broader market was quiet, specific stocks saw significant movement driven by corporate developments. Nvidia's shares advanced by 2.0% after the artificial intelligence chipmaking giant announced a strategic move to license chip technology from the startup Groq and hire its CEO. This deal is expected to bolster Nvidia's AI capabilities further.
In the retail sector, Target's stock jumped 2.6% following a report from the Financial Times. The report indicated that hedge fund Toms Capital Investment Management has taken a significant stake in the company, signaling potential activist investor involvement.
A Volatile Year Set for Strong Double-Digit Gains
With just three trading days left in 2025, the market is poised to close a turbulent year on a high note. Despite anxieties over tariffs, geopolitical tensions, and the volatile ride of AI momentum stocks, the three main indexes are all set to register impressive double-digit percentage gains for the year. The technology-heavy Nasdaq is leading the charge.
Ryan Detrick added, "It's a good reminder for investors that volatility is the toll we pay to get the solid gains we've seen in the last three years. Odds are, 2026 is not going to be the first year in history with no volatility and no bad headlines. So you prepare yourself."
In sector-specific performance, technology stocks led the gainers within the S&P 500 on Friday, while energy lagged. For the year-to-date, communication services, technology, and industrials have outperformed the broader market. Real estate appears to be the only major sector heading for an annual loss.
Precious metal miners also saw gains as silver and gold prices hit fresh record highs, lifting US-listed shares of companies like First Majestic, Coeur Mining, and Endeavour Silver.
At the close, the Dow Jones Industrial Average was down 78.35 points, or 0.16%, at 48,651.67. The S&P 500 was nearly flat, down a marginal 0.58 points to 6,931.47. The Nasdaq Composite edged up 21.06 points, or 0.09%, to 23,634.36.
