Investors are gearing up for a year-end rally in what is typically a supportive month for stocks.
by Andre Janse van Vuuren and Levin Stamm
The S&P 500 is set to continue its advance toward a new all-time high as the prospect of interest-rate cuts and confidence in the economy fuel investors’ appetite for risk.
Futures on the US benchmark rose on Friday after the index closed within 0.5% of a fresh record. The gauge is set for its first back-to-back weekly gain since October, signaling that traders are shaking off November’s jitters over valuations and the lack of visibility on the economy during the data blackout.
Nasdaq 100 contracts climbed 0.4%, while European and Asian gauges also added to the week’s gains. A measure of volatility dropped to the lowest since October. The dollar slipped, while Treasuries steadied.
With a rate cut next week largely priced in and bets pointing to further easing into 2026, investors are gearing up for a year-end rally in what is typically a supportive month for stocks. Growing confidence that the US economy remains resilient, despite softer employment, is also prompting rotations into stocks that tend to benefit from domestic strength.
“Santa will bring presents for everybody, toys for the kids and gains for investors,” said Stephan Kemper, chief investment strategist at BNP Paribas Wealth Management. “Apart from the regular seasonality there are plenty of other reasons supporting the market: rate cuts and ongoing M&A activity are some of them.”
Corporate News
- Moore Threads Technology Co., a leading Chinese artificial intelligence chipmaker, soared as much as 502% in its Shanghai debut after raising 8 billion yuan ($1.13 billion) in an IPO.
- Warner Bros. Discovery Inc. has entered exclusive negotiations to sell its film and TV studios and HBO Max streaming service to Netflix Inc., according to people familiar with the discussions.
- Nvidia Corp. would be barred from shipping advanced artificial intelligence chips to China under bipartisan legislation unveiled Thursday in a bid to codify existing US restrictions on exports of advanced semiconductors to the Chinese market.
- Swiss Re AG announced its first share buyback in five years while disclosing a $250 million charge.
Some of the main moves in markets:
Stocks
- The Stoxx Europe 600 rose 0.3% as of 9:33 a.m. London time
- S&P 500 futures rose 0.2%
- Nasdaq 100 futures rose 0.4%
- Futures on the Dow Jones Industrial Average were little changed
- The MSCI Asia Pacific Index rose 0.1%
- The MSCI Emerging Markets Index rose 0.8%
Currencies
- The Bloomberg Dollar Spot Index fell 0.1%
- The euro was little changed at $1.1652
- The Japanese yen rose 0.1% to 154.92 per dollar
- The offshore yuan was little changed at 7.0677 per dollar
- The British pound rose 0.2% to $1.3349
Cryptocurrencies
- Bitcoin fell 0.9% to $91,324.34
- Ether was little changed at $3,121.1
Bonds
- The yield on 10-year Treasuries was little changed at 4.10%
- Germany’s 10-year yield was little changed at 2.78%
- Britain’s 10-year yield was little changed at 4.43%
Commodities
- Brent crude was little changed
- Spot gold rose 0.3% to $4,220.52 an ounce
This story was produced with the assistance of Bloomberg Automation.
© 2025 Bloomberg L.P.