Stock Market Rises as Dow, S&P 500, Nasdaq Gain; Gold Hits Record

Dec 23, 2025, 2:41 AM

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US stock markets experienced a positive trend on Monday, marking the third consecutive day of gains for major indices. The Dow Jones Industrial Average rose by 227.79 points, or 0.47%, closing at 48,362.68. The S&P 500 increased by 0.64% to reach 6,878.49, while the Nasdaq Composite climbed 0.52% to finish at 23,428.83.

The upward momentum in the stock market was largely driven by a resurgence in technology stocks, particularly those linked to artificial intelligence (AI). Nvidia, a key player in the AI sector, saw its shares rise by more than 1% following reports that the company plans to begin shipments of its H200 chips to China by mid-February. Other tech stocks, such as Micron Technology and Oracle, also contributed to the market's gains, with increases of around 4% and more than 3%, respectively.

Investors are closely monitoring the performance of AI stocks as they assess the potential for a year-end rally, often referred to as a "Santa Claus rally." Despite the recent gains, there are concerns about high valuations in the tech sector, leading some investors to consider rotating into cheaper market segments. Will McGough, deputy chief investment officer at Prime Capital Financial, noted that while optimism remains, volatility may be expected as the market approaches the end of the year.

In addition to the stock market's performance, gold prices surged to a record high amid rising geopolitical tensions, particularly related to Venezuela. The increase in gold prices is seen as a safe-haven response to these tensions, with investors seeking stability in precious metals during uncertain times. The price of gold has been on an upward trajectory, reflecting broader market sentiments and concerns about inflation and economic stability.

Looking ahead, the upcoming week is expected to bring key economic data, including a first look at third-quarter GDP and updates on the PCE price index for July, August, and September. These reports will be crucial for investors as they gauge the economic landscape and its potential impact on market trends. The stock market will have shortened trading hours on Wednesday, closing early for Christmas Eve, and will remain closed on Christmas Day.

As 2025 draws to a close, the S&P 500 has recorded a remarkable increase of approximately 17% year-to-date, following gains of over 24% in both 2023 and 2024. This consistent performance raises expectations for continued growth, although analysts caution that the market may face challenges ahead, including potential shifts in Federal Reserve policy and upcoming midterm elections that could introduce volatility into the market environment.

In summary, the US stock market's recent gains, driven by technology stocks and a favorable economic outlook, coupled with record gold prices, suggest a robust end to the year. Investors remain optimistic about the potential for a year-end rally, while also preparing for possible fluctuations in the market as new economic data emerges and geopolitical tensions evolve.

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