NEW YORK: The S&P 500 and the Dow Jones Industrial Average ended at record closing highs on Wednesday, while gold held just below $4,500 in a light-volume, truncated Christmas Eve session.
All three major US stock indexes closed higher, with the S&P 500 set to gain nearly 18% for the year. US Treasury yields eased, while gold and silver edged back from record levels. For the year, the metals are on course to gain roughly 70% and 150%, respectively.
"It's been a good year for stocks, and most global markets followed suit," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. "And it’s been a super year for precious metals."
Economic data showed seasonally volatile initial jobless claims fell 4.5% last week, while continuing claims rose 2.0% to 1.923 million, reflecting weakening consumer confidence and supporting the case for additional US Federal Reserve rate cuts in 2026.
"I think the Fed will cut rates twice in 2026 because the labor market is weaker than the numbers suggest," Cardillo added.
The Dow rose 289.40 points, or 0.60%, to 48,731.81. The S&P 500 gained 22.34 points, or 0.32%, to 6,932.13, and the Nasdaq Composite rose 51.46 points, or 0.22%, to 23,613.31.
European exchanges closed early, with shares ending the holiday-shortened week near record highs and on track for their strongest annual performance since 2021 amid easing interest rates. MSCI's gauge of global stocks rose 0.24% to 1,022.51.
Emerging market stocks rose 0.41% to 1,392.87. Asia-Pacific shares outside Japan rose 0.35% to 716.93, while Japan's Nikkei fell 0.14% to 50,344.10.
US Treasury yields declined: the 10-year note fell to 4.136%, the 30-year to 4.7948%, and the 2-year note to 3.51%, reflecting expectations for future Fed moves.
The dollar remained range-bound but is on course for its largest annual drop since 2017. The dollar index rose 0.1% to 98.00, while the euro fell 0.18% to $1.1773.
Crude oil gave up earlier gains, with US crude at $58.36 a barrel and Brent at $62.25, heading for their steepest yearly declines in five years. Gold pulled back slightly after breaching $4,500 per ounce, with spot gold at $4,480.23 and US futures at $4,483.40.— Reuters
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