Dow S&P Nasdaq hold gains post-Christmas: US stock futures today: Wall Street up as Dow, S&P 500, Nasdaq stay green — is the Santa Claus rally starting?
This rally caps off a stellar year in which megacaps made gains despite global markets being closed for Christmas and Boxing Day. Crude oil fell to $58.35 per barrel and the 10-year Treasury yield fell to 4.13%. Highlights included Travere Therapeutics, rising 13.9% to $40.28 in a breakout. Growth ETFs such as SMH (up 0.3%) and FFTY (up 0.3%) reflect strength in semis and software. As 2025 approaches, watch for weak volumes ahead of a potential Santa Claus rally.
Dow futures fell 53 points, or 0.11%, to 48,976 today, down slightly from recent record highs. S&P 500 futures lost 0.04% to 6,979 points, while Nasdaq futures fell 0.01%, remaining near tops near 25,878 points.
Wednesday’s session continued the upward trend in a quiet half-day grind. Dow rose 0.6% to a record close. The S&P 500 rose 0.3% to an all-time intraday high. Nasdaq Composite gained 0.2%. The small-cap Russell 2000 gained 0.3%. Equal-weight ETFs shined: Invesco S&P 500 Equal Weight (RSP) was up 0.4%, First Trust Nasdaq 100 Equal Weight (QQEW) was up 0.2%. Sector ETFs are mixed: Financials (XLF) +0.5%, Healthcare (XLV) +0.5%, Energy (XLE) -0.3%.
Market participants are currently focused on a major strategic move by Nvidia, which recently announced a technology licensing agreement with AI chip startup Groq. This development, combined with Palantir’s continued strength and Tesla’s near-record valuations, has kept bullish momentum intact despite weak holiday trading volumes. While global markets in London, Toronto and Hong Kong are set to remain closed on Boxing Day, US futures point to a steady reopening. While overnight price action in the futures market does not always determine the next day’s regular session, fundamental data points to a market consolidating gains rather than pulling back.
Nvidia and Groq Agreement Gave Impetus to the Technology Sector
The semiconductor landscape changed this week following Nvidia’s strategic move to license core technology from Groq, a startup founded by the original architects of Google’s Tensor processing units. While the financial details of the deal were not disclosed, the agreement includes the transfer of key personnel to Nvidia, further solidifying the giant’s dominance over the artificial intelligence hardware industry. Nvidia shares responded with a slight gain in late trading after finishing Wednesday’s session at 188.61. Investors are closely watching the 212.19 consolidation buy point, but the stock remains technically actionable as it remains firmly above the 50-day moving average.
This partnership is particularly notable because Groq’s technology is designed to compete directly with Nvidia’s GPUs. By acquiring talent and licensing intellectual property, Nvidia is effectively neutralizing a potential long-term competitor while improving its own architecture. This sentiment spilled over into broader technology indexes, with the VanEck Vectors Semiconductor ETF (SMH) gaining 0.3%. Palantir Technologies continues to attract attention by trading at 194.17. The data analytics firm is currently sitting in a prime buy zone and has successfully broken out of the cup-with-handle base with a pivot point of 190.39.
S&P 500 and Dow Jones Reach Record Highs Amid Broad Rally
The broader market rally showed impressive breadth in the final pre-Christmas session. The Dow Jones Industrial Average rose 0.6% to a new record close, while the S&P 500 rose 0.3% to reach a new intraday high. Small-cap stocks also added to the gains, with the Russell 2000 gaining 0.3%. This synchronized movement shows that the current rally is not solely dependent on the “Magnificent Seven” tech giants but has spread across the industrial and financial sectors. The Financial Select Sector SPDR ETF (XLF) and the Industrial Select Sector SPDR Fund (XLI) posted gains of 0.5% and 0.3%, respectively, indicating a healthy pivot towards cyclical sectors.
Fixed income markets created additional headwinds for stocks, with the 10-year Treasury yield falling 3.5 basis points to 4.13%. Lower yields typically increase the attractiveness of growth stocks, and this is evident in Travere Therapeutics’ performance. Travere was a standout performer, closing at 40.28 points, up 13.9%. The biotech firm’s strong exit from a brief period of consolidation has placed it prominently on the IBD 50 list. Meanwhile, energy markets remained weak, with U.S. crude oil prices falling slightly to $58.35 per barrel, helping ease concerns about energy-driven inflation.
Tesla and Alphabet Maintain Power in Key Purchasing Regions
Tesla and Alphabet remain at the center of the year-end market narrative, with both stocks hovering near critical technical levels. Tesla shares ended the Wednesday session at 485.40, holding the position just above the major buy point on a cup basis at 474.07. The electric vehicle maker has benefited from renewed optimism about autonomous driving software. Investors are weighing CEO Elon Musk’s ambitious goals for unregulated robotaxi in Texas based on the stock’s recent rally. Despite Wednesday’s small partial decline, Tesla remains the primary holding in many ARK Invest ETFs, signaling continued confidence from high-growth institutional investors.
Google’s parent company Alphabet is also exhibiting constructive price action. The stock closed at 314.09, staying just below the short-term consolidation downtrend. Market analysts suggest that Alphabet could form a “flat-bottomed” formation starting next week, providing a new entry point for disciplined investors. The stock is currently ranked in both the Leaderboard and the IBD Big Cap 20. These megacaps are expected to drive volatility as the market enters the low volume period between Christmas and New Year. While trading is expected to be weak through the first week of 2026, current technical settings for these leaders suggest the path of least resistance continues to the upside.
Top growth stocks in buying zones: Nvidia, Palantir Lead
Travere Therapeutics (TVTX) broke away from consolidation, rising 13.9% to $40.28 – currently at IBD 50. Palantir (PLTR) consolidated in the 190.39 buy zone from a cup base to $194.17; Best IGV holding on Leaderboard and Big Cap 20. Nvidia (NVDA) fell to $188.61 but maintained the 50-day line after a 3% rally on Tuesday; The star of the watchlist is Wednesday’s IBD Stock, targeting a post-Groq deal entry of 212.19. Alphabet (GOOGL) is embracing the downtrend in early consolidation at $314.09. Tesla (TSLA) paused at $485.40, above a 474.07 cup base buy point, driven by robotaxi excitement for Austin by the end of the year.
