US equities entered the final stretch of 2025 hovering near record territory, with traders trying to extend the so-called Santa Claus rally while volumes thin into year-end. Reuters noted the S&P 500 eyes 7,000 after a year marked by tariff-driven volatility in spring and a late-year rebound.
The hard numbers tell the story: the S&P 500 finished Friday at **6,929.94** and has gained **about 18%** in 2025, while the Nasdaq Composite is up **about 22%** on the year. Investors are also watching rotation. Reuters highlighted that S&P 500 tech is down **more than 3%** since early November even as areas like financials and healthcare have firmed, a notable change from the AI-led run that dominated prior years.
Two near-term catalysts sit on the calendar, and both are about policy expectations rather than earnings. First, the Fed’s December meeting minutes land midweek, and may clarify how comfortable officials are after cutting **75 bps** over the final three meetings of 2025 to a policy range of **3.50%–3.75%**. Second, investors are increasingly sensitive to Washington’s effect on rates, a point underscored by Reuters’ look at the $30 trillion US bond market and the “term premium,” the extra yield demanded to hold longer-dated Treasurys.
Meanwhile, cross-asset signals remain lively even if equity index moves are muted. CBS reported silver rose **more than 4.5%** to **$74.88/oz** while gold climbed **about 1.1%**, extending a broader precious-metals bid tied to safe-haven demand and rate-cut expectations.
Use this quiet week to stress-test positioning for 2026: if the Fed minutes turn hawkish or the bond market term premium rises further, the most crowded growth trades could wobble, while rotation beneficiaries may keep grinding higher.
