The S&P 500 posted a record close on Wednesday, ahead of the Christmas holiday on Thursday, and was about 1% from reaching the 7,000 level for the first time. Heading into the new year, investors are highly focused on when the Fed might further cut interest rates. With just a handful of trading sessions left in 2025, the S&P 500 was up nearly 18% for the year, with the technology-heavy Nasdaq Composite up 22%. Despite rebounding this week, the S&P 500 tech sector has declined more than 3% since the start of November. The market moves indicate some rotation into areas where valuations are more moderate, said Anthony Saglimbene, chief market strategist at Ameriprise Financial.

Source: The Edge Markets December 26, 2025 11:24 UTC