Wall Street heads into a holiday-shortened week with markets closed on Christmas Day, but investors will still have plenty to watch, including key economic data and major corporate moves.
On Tuesday, the delayed Q3 GDP report is set to land, along with a reading on the core personal consumption expenditures (PCE) price index — widely considered the Federal Reserve’s preferred gauge of inflation. “With inflation moderating, a ‘modestly restrictive’ policy setting may be all but moot,” Deutsche Bank analysts wrote in a festive recap of recent economic developments, noting that traders are keeping a close eye on labor market signals and rate cut probabilities for 2026.
Monday also brings a high-profile corporate vote, as shareholders of Electronic Arts Inc (NASDAQ:EA, XETRA:ERT) decide on a proposed acquisition by a consortium led by Saudi Arabia’s sovereign wealth fund. If approved, the deal would become the largest leveraged buyout in history.
Analysts are also watching for a so-called Santa Claus rally — a historical pattern of stock gains in the final five trading days of the year and the first two of the next. Kathleen Brooks, research director at XTB, noted that “tech stocks are leading this Santa Rally and Europe is tech-light, so it may be a laggard as we start a new week.”
Precious metals are also on the move. Gold hit a fresh record above $4,400 on Monday, capping its strongest annual performance in four decades, Brooks said. Silver is up more than 20% this month, outperforming equities, while oil prices have surged following US sanctions on Venezuela, though analysts caution the gains may be fleeting.
US stock market volatility has eased as the year winds down, with the S&P 500 hovering near record highs. Oracle staged a strong rebound after reporting robust demand in its AI division and being named a new owner of TikTok’s US business. Still, December trading has been uneven, with the S&P 500 down 0.2% and the Nasdaq lower by 0.25% month-to-date, Brooks noted.
Bond markets have been relatively stable, with Treasury yields dipping slightly amid a wave of central bank decisions and economic data. Key releases to watch this week include consumer confidence, durable goods orders, FOMC meeting minutes, and industrial production data for October and November. Analysts say the minutes could be particularly market-moving as investors assess the Fed’s potential moves in 2026.
As the holiday season approaches, investors will be balancing optimism for year-end gains with caution over economic signals and geopolitical developments, making for a closely watched, albeit short, week on Wall Street.