As the street awaits Santa’s arrival, yesterday’s session felt indecisive.  But beyond the orderly split among the S&P 500 (SPX) sectors, sizzling action is taking place. The Technology sector (XLK) saw a solid intraday climb from negative territory, helping major indices move higher after largely trading flat.

The hottest stocks of 2025 are catching bids again, with NVIDIA (NVDA) and Broadcom (AVGO) leading the advance. Other mega-cap Technology names also traded modestly higher.

The market received comments from Fed Chair contender Kevin Hassett that noted the U.S. is “way behind the curve” on cutting interest rates, arguing that AI is boosting growth, while easing inflation. He warned the Fed isn’t lowering rates fast enough, even after stronger-than-expected GDP growth in Q3.

Although today is the start of the Santa Claus rally, according to Bespoke, the best day to bet on the S&P 500 is the day after Christmas.  

Today’s Session

Futures are dancing around their baselines heading into the market open, with volume expected to be light on this holiday shortened trading day (the market closes at 1 pm ET).

Metal commodities continue to rally this morning.

On the job front, initial claims fell by 10,000 to 214,000 and below the forecast of 223,000 for the week ending December 20. Meanwhile, continuing claims for the week ending on December 13 rose by 38,000 to 1,923,000.

It’s the most wonderful time of the year. We wish everyone and their families a merry Christmas. Thank you for sharing your time with us.

There will be no Afternoon Note. Additionally, the market will be closed tomorrow for Christmas.