Market Highlights in Late 2025
The stock market is wrapping up 2025 with notable momentum. The S&P 500 is on track for its third consecutive annual gain, achieving an impressive 80% rise over three years. On Christmas Eve, the “Santa Rally” pushed the Dow and S&P 500 to new record highs, reflecting continued bullish investor sentiment.
Major indexes such as the S&P 500, Dow Jones Industrials, and Nasdaq 100 saw mild gains, with the Dow up 0.6% and the S&P 500 rising 0.32% on a recent trading day. Despite this positive performance, market volumes remain light as many investors close out positions for the year.
Notable Company Developments
Several companies made headlines with significant moves and updates:
- Plug Power officially began its first liquid hydrogen supply contract with NASA, marking its entry into the aerospace sector. The company will supply up to 218,000 kilograms of liquid hydrogen, highlighting its expanding industrial footprint.
- Hecla Mining received a price target upgrade from CIBC, reflecting optimism following its recent exploration updates. The company is recovering production levels after earlier pauses.
- Nvidia made a major acquisition by purchasing AI chip startup Groq for $20 billion in cash, strengthening its position in decentralized AI technology.
- Rivian saw its stock price jump 15%, buoyed by renewed investor confidence and potential for further growth.
- Camtek reported record revenue, though some investors took profits amid a 30% stock run, indicating mixed sentiment on the semiconductor rally.
- Huntsman stock dropped 45% over the past year, but one fund is doubling down with a $10 million bet, betting on cash flow and restructuring over near-term earnings challenges.
- Edgewise Therapeutics attracted attention for its promising pipeline heart disease treatment, causing a positive market reaction.
Stock Picks and Outlooks for 2026
Heading into 2026, market strategists and analysts have shared insights on potential opportunities and risks:
- Magnificent Seven Stocks: Freedom Capital Markets’ Chief Market Strategist Jay Woods highlighted favorite and least favorite stocks among this influential group, advising investors to stick with strong performers.
- Microsoft is seen as a compelling buy despite two years of underperformance, with expectations of nearly 30% upside next year.
- Nike stocks climbed after an insider purchase by Apple’s CEO Tim Cook, boosting key indexes. However, investors are cautious after a double-digit decline in 2025.
- AMD could see a catalyst in 2026 if Alibaba places orders for its MI308 GPUs, potentially driving share gains.
- Under-$10 Stocks: Some companies with improving fundamentals and strong operational momentum are positioned to go parabolic, providing potential long-term portfolio value.
- Nvidia continues to hit key technical levels with no signs of an AI bubble yet, making it a watch-worthy stock.
- Chart Industries attracted a new $27 million bet amid record orders and a buyout deal, signaling confidence in its industrial leverage.
Economic and Market Factors to Watch
Several broader themes could influence markets in the coming year:
- Holiday Debt Concerns: Record holiday spending in 2025 has increased household reliance on debt, potentially creating financial stress in January that could ripple through risk markets including crypto.
- Central Bank Actions: China’s central bank has pledged to ensure adequate money supply to support economic growth and inflation targets, which provided some comfort to Asian markets during holiday trading.
- Natural Gas and Commodity Prices: Natural gas prices recently fell due to warmer forecasts but remain volatile. Sugar prices are supported by forecasts of lower production in Brazil for 2026/27.
- Inflation Risks: Investor Kevin O’Leary warned that proposed $2,000 stimulus cheques could reignite inflation concerns, likening the idea to “helicopter money.”
Smart Financial Moves for 2026
With a new year approaching, experts suggest practical steps to strengthen personal finances and investments:
- Set clear money resolutions to save more and invest smarter, including building an emergency fund and starting tax planning early.
- Consider retirement planning strategies to fuel investments, boost income, and reduce taxes, especially with upcoming changes in laws.
- Review options for IRA accounts to find the best fit for long-term retirement savings.
- Be mindful of loan purposes and timing, such as refinancing car loans at optimal moments for maximum benefit.
- Explore first-time car buyer programs that often offer flexible requirements.
- Stay cautious with highly speculative assets like certain cryptocurrencies, noting tokens like Shiba Inu have seen significant declines and waning investor interest.
Final Thoughts
As 2026 approaches, the market landscape is shaped by record highs, strategic company moves, and cautious optimism. Staying informed about sector-specific developments, economic trends, and smart financial planning can help investors navigate the opportunities and challenges ahead.