Stock Market Update: Dow, S&P 500, Nasdaq Futures Rise

Dec 21, 2025, 2:33 AM
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US stock futures rose on Friday, indicating a positive end to a volatile week on Wall Street. The S&P 500 futures increased by 0.3%, while contracts on the Nasdaq 100 gained 0.4%, building on the momentum from Thursday's rally. The Dow Jones Industrial Average futures ticked up by 0.1% as investors reacted to signs of cooling inflation and waning concerns over artificial intelligence (AI) developments.
The S&P 500 and Nasdaq Composite both recorded weekly gains, rising 0.1% and 0.4%, respectively, despite the Dow experiencing a 0.6% decline over the same period. This late-week rebound has sparked hopes for a "Santa Claus rally" as the year draws to a close, with traders looking for positive momentum heading into the new year.
In the tech sector, Oracle's stock surged following news that China's ByteDance had signed agreements to establish a US TikTok joint venture, which has been a point of contention in recent months. Additionally, Nvidia's shares rose significantly after reports indicated that the US government is reviewing the potential sale of its H200 AI chips to China, a move that could enhance US competitiveness in the tech space.
The market's optimism is further supported by a more favorable inflation outlook and a weakening job market, which have reignited hopes that the Federal Reserve may continue its recent trend of easing monetary policy. Many traders are betting on two interest rate cuts in the coming year, with a shift in sentiment toward more aggressive cuts in recent days. A final consumer sentiment report from the University of Michigan is expected to provide further insights into economic conditions, following an initial December survey that showed an increase for the first time in five months.
Meanwhile, the benchmark 10-year Treasury yield rose to 4.15%, reflecting global market adjustments following the Bank of Japan's decision to raise interest rates to their highest level since 1995. This development has implications for bond markets worldwide and could influence investor behavior in the stock market as well.
Despite the positive trends, the week has not been without challenges. Nike's shares fell sharply after the company reported a decline in quarterly profits, attributing the downturn to higher US tariffs and ongoing struggles in the Chinese market. The sports giant is navigating a complex landscape as it prepares for major product rollouts tied to upcoming global events like the Olympics and the World Cup in 2026.
As the trading week concludes, US stock markets are set to remain open on December 24 and December 26, despite a federal government closure ordered by President Trump. This decision reflects the ongoing commitment to maintaining market operations during the holiday season, even amid broader economic uncertainties.
In summary, the stock market is experiencing a rebound as investors respond to positive economic signals and developments in the tech sector. While the Dow has faced some challenges, the overall sentiment remains cautiously optimistic as traders look ahead to the new year and potential policy shifts from the Federal Reserve. The coming weeks will be critical in determining whether this momentum can be sustained into 2026 and beyond.

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