S&P 500 hits new high after Christmas break: Nvidia sparks buying frenzy

The S&P 500 index hit a new intraday high during trading on Friday, December 26, according to CNBC. Traders returned to the market after the Christmas holidays, but trading volume during this period is traditionally low. The S&P 500 jumped 0.1% at the opening to 6,945 points, but then returned to Wednesday's closing level, after which it fell by about 0.1%.

The Nasdaq Composite technology sector index also showed minimal movement on Friday, while the Dow Jones Industrial Average blue chip index fell 0.2%.

One of the growth leaders was Nvidia shares, which rose 1.7% after news of the company's largest deal. It signed an agreement with Groq, a startup engaged in microchip development. As a result, Nvidia will receive a non-exclusive license for Groq's chip architecture. According to CNBC, this will cost the semiconductor giant $20 billion.

The stock prices of chipmakers that produce memory for AI processors, such as Micron and SanDisk, jumped after DigiTimes reported that Samsung Electronics and SK Hynix were raising prices for fifth-generation HBM3E high-speed memory chips by almost 20%. Micron shares subsequently reached a new record high, rising 2%, but then lost ground and fell 0.7% from their closing level on December 24.

Prices for precious metals—gold, silver, and platinum—have once again hit record highs, continuing a strong rally caused by growing geopolitical tensions and a weakening US dollar, according to Bloomberg. This has led to a rise in the shares of mining companies, including Coeur Mining and Freeport-McMoRan.

"2025 is coming to an end with slightly more positive than negative factors," wrote Mark Newton, head of technical strategy at Fundstrat, in a note quoted by CNBC. "Although talk of an 'AI bubble,' the risks of new tariffs, and another government shutdown remain in the spotlight, the U.S. stock market has largely ignored these fears as the year comes to a close."

"Markets still look constructive, but it's important to be selective with trading ideas," Piper Sandler chief strategist Craig Johnson told Bloomberg. "The fact that growth is supporting an increasing number of stocks and inflationary pressures are easing supports expectations of a Santa Claus rally. At the same time, market leadership continues to narrow to AI, cyclical stocks, and select defensive sectors."

For the S&P 500, December 26 has historically been the most positive day of the year, according to data from Bespoke Investment Group cited by MarketWatch. In the 39 years since 1953, the broad market index has fallen only six times on this day, and never by more than 0.5%. Trading sessions on December 26 also show the highest average growth of 0.5%.

At the same time, this is usually the most volatile day between Christmas and New Year's Eve, according to Bloomberg.

This article was AI-translated and verified by a human editor