Stock Market Analysis, Commentary and Picks for the week ending Dec 26, 2025

Markets in Brief

The post-Christmas session was predictably quiet, but the bulls still managed to unwrap some gifts—the S&P 500 touched fresh all-time highs twice during the holiday-shortened week while the Nasdaq and Dow hovered near their own records. Market breadth improved, mega caps like Nvidia, Meta, and Broadcom delivered gains, and all eleven S&P 500 sectors finished in the green, led by a breakout in precious metals. Wall Street strategists remain optimistic, forecasting a fourth consecutive winning year with 15% upside for the benchmark index. However, caution flags are emerging beneath the surface: momentum is slowing, sector rotation from aggressive to defensive plays is underway, and Bitcoin's technical weakness may be flashing an early warning signal. With the holiday rally typically fading by mid-January, investors are advised to stay nimble, trim winners to raise cash, and prepare for a potential consolidation phase—or even a correction—in the weeks ahead.