U.S. stock futures are trending higher in anticipation of a holiday-shortened trading week. This follows a robust rally on December 19, 2025, known as “triple witching,” when options and futures contracts expired, contributing to a positive close for major indices. Analysts are now speculating that this rally could signal the onset of a traditional December “Santa Claus” rally, typically characterized by rising stock prices as the year comes to a close.
As of December 22, the major indices reflect a strong performance. The tech-heavy Nasdaq finished the week at 23,307, up 1.31%. The S&P 500 closed at 6,834, increasing by 0.88%, while the Dow Jones Industrial Average ended the trading week at 48,134, gaining 0.38%. The Russell 2000 index, which focuses on small-cap stocks, also celebrated a notable rise, closing at 2,529, up 0.86%. These indices are now trading near all-time highs, suggesting a bullish sentiment among investors.
Treasury Yields and Energy Markets
In the bond market, yields rose across the curve on December 19. The 30-year long bond closed at 4.83%, while the benchmark 10-year note finished at 4.15%. This increase can be attributed to profit-taking by traders, concerns over November’s inflation data accuracy due to missing reports, and mixed signals from Federal Reserve Governors regarding potential rate cuts in 2026.
The energy sector saw significant buying activity, driven by value managers and short-sellers covering their positions. Brent Crude oil closed at $60.51, an increase of 1.15%, while West Texas Intermediate traded at $56.54, up 0.96%. Natural gas prices also rallied, recovering from a previous decline, with a final trade of $4.02, marking a 2.94% increase.
Market Reactions in Precious Metals and Cryptocurrencies
In the precious metals market, both gold and silver prices experienced modest gains. Gold reached $4,330, while silver closed at $65.95. Analysts on Wall Street are increasingly optimistic about silver’s potential in 2026, particularly due to robust industrial demand.
The cryptocurrency market displayed typical volatility on December 19. Bitcoin fluctuated around $88,000 before trending higher, settling at $90,157 by Monday morning. Ethereum was quoted at $3,055. Bitcoin’s recent performance has seen it down roughly 12% from its October highs, as investors navigate the broader market dynamics.
Investors and traders are keenly watching analyst ratings as they prepare for the year-end trading. On December 22, several significant upgrades and downgrades were reported by analysts across various firms.
Analyst upgrades include:
– **Cummins Inc. (NYSE: CMI)** upgraded to Outperform from Market Perform at Raymond James, with a target price of **$585**.
– **Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI)** raised to Buy from Hold at Loop Capital, with a target price increase to **$135** from **$130**.
– **Volaris Inc. (NYSE: VLRS)** upgraded to Outperform from Neutral at Bradesco BBI, targeting **$12**.
On the downgrades side, notable mentions are:
– **Amicus Therapeutics Inc. (NASDAQ: FOLD)**, downgraded to Neutral from Buy at Citigroup, with a target price reduction to **$14.50** from **$17**.
– **Clearwater Analytics Holdings Inc. (NYSE: CWAN)** cut to Market Perform from Outperform at William Blair, with no price target provided following an all-cash bid of **$24.50**.
– **Sealed Air Corp. (NYSE: SEE)** was downgraded to Market Perform from Strong Buy at Raymond James, with no target due to ongoing analysis of a potential take-private offer.
In addition, several companies saw new initiations:
– **Arcellx Inc. (NASDAQ: ACLX)** initiated with an Overweight rating at Wells Fargo, targeting **$100**.
– **BlackSky Technology Inc. (NYSE: BKSY)** received a Buy rating at Jefferies, with a target price of **$23**.
– **Invivyd Inc. (NASDAQ: IVVD)** started with a Buy rating at BTIG, targeting **$10**.
As the trading year draws to a close, the market’s direction remains uncertain, but analysts continue to offer insights that could guide investor decisions in the coming weeks.
