Reviewed by Gotrade Internal Analyst
Seasonality and positioning shape year-end trade.
US stocks traded near record levels on Friday as markets moved into a historically strong seasonal window often associated with the Santa Claus rally. With the Christmas holiday behind them, trading activity remained light, leaving price action driven more by positioning and technical flows than fresh fundamental catalysts.
The S&P 500 briefly touched a new intraday high before closing slightly lower, ending the session down 0.03%. The Nasdaq Composite slipped 0.09%, while the Dow Jones Industrial Average edged down 0.04%. Despite the flat close, all three major indexes finished the week higher, with the S&P 500 posting a 1.4% weekly gain.
This period, covering the final five trading days of the year and the first two sessions of the new year, has historically been supportive for equities. According to the Stock Trader’s Almanac, the S&P 500 has averaged a 1.3% gain during this window since 1950, keeping seasonal patterns firmly on traders’ radars.
Beyond index levels, leadership has continued to broaden. Recent record highs were supported not only by technology but also by financials and industrials, adding confidence that the rally reflects broader economic tailwinds such as earlier rate cuts and fiscal support rather than narrow positioning.
📊 Market Wrap Dec 29th 2025
🧠 Analyst Notes
💬 Market Highlights
Amazon Halts Commercial Drone Delivery Plans in Italy
Amazon (AMZN) has suspended its plans to launch commercial drone deliveries in Italy following a strategic review. Despite positive engagement with Italian aviation regulators, the company concluded that the broader regulatory framework does not currently support the program’s long-term objectives. Amazon said its drone delivery initiatives in the U.S. and UK continue to progress, with test flights and commercial operations showing positive results.
UnitedHealth and Humana Flagged for Excess Medicare Drug Refill Costs
UnitedHealth (UNH) and Humana (HUM) were identified as leading contributors to excessive costs from early prescription refills under Medicare between 2021 and 2023. A Wall Street Journal analysis found that mail-order pharmacies drove billions of dollars in excess spending despite representing a small share of total prescriptions. Both insurers said the data reflects past practices during pandemic-era rule relaxations and emphasized that refill controls have since been tightened, though the findings may increase regulatory scrutiny of the sector.
New York Mandates Mental Health Warning Labels on Social Media Platforms
New York State has enacted new rules requiring social media platforms to display mental health warning labels on features deemed addictive, such as infinite scroll and autoplay. The regulation targets major platforms including Meta (META), Google (GOOG) (GOOGL), Microsoft (MSFT), Snap (SNAP), and Reddit (RDDT), and is aimed at addressing youth mental health concerns. The move adds to longer-term regulatory risk for engagement-driven technology companies.
📅 Earnings Watch
No major earnings releases this week.
As markets trade through the Santa rally window, traders are watching whether seasonal tailwinds and broadening sector leadership can carry momentum into early 2026, or if thin liquidity leads to sharper swings.
Which stocks are you watching today?
Disclaimer:
Gotrade is the trading name of Gotrade Securities Inc., registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
