Only select stock exchanges across Asia operated on Christmas Day, following Wall Street’s record-breaking performance fueled by technology shares and growing speculation around shifts in U.S. monetary policy as the Federal Reserve prepares for new leadership.
Japan’s Nikkei 225 moderately climbed 0.02% to 50,354.44, while the Shanghai Composite Index advanced 0.16% to 3,947.07 in early trading. Major regional exchanges, including those in Australia, South Korea, India, Indonesia, Taiwan, and Hong Kong, remained closed for the holiday.
On Wall Street, both the S&P 500 and the Dow Jones Industrial Average finished Wednesday’s shortened Christmas Eve session at fresh all-time highs, with the S&P 500 set to enjoy an annual gain of almost 18%. Trading volume was subdued, and gold settled just below the $4,500 mark after an earlier surge.
The Dow rose 289.40 points, or 0.60%, closing at 48,731.81. The S&P 500 added 22.34 points, or 0.32%, reaching 6,932.13. Meanwhile, the Nasdaq Composite increased 51.46 points, or 0.22%, to 23,613.31.
Despite rising optimism, traders are not expecting the Federal Reserve to lower interest rates in January. However, the market remains confident in prospects for two potential cuts in 2026. The upcoming transition at the Federal Reserve’s helm is drawing attention, as President Donald Trump has indicated a preference for appointing a chair more inclined to pursue significant rate reductions to bolster equity markets.
“I want my new Fed Chairman to lower Interest Rates if the Market is doing well, not destroy the Market for no reason whatsoever,” President Trump said.
Commodity markets saw little movement. Brent crude futures slipped by 23 cents or 0.4% to $62.15 per barrel, while U.S. West Texas Intermediate crude edged down 8 cents, or 0.2%, to $58.29 per barrel. Oil prices are on track for their steepest full-year decline since 2020, as investors monitor U.S. economic data alongside uncertainty surrounding supply from Venezuela and Russia.
In precious metals, spot gold pulled back 0.4% to $4,468.96 per ounce after briefly notching a record high of $4,525.18. Silver and platinum also retreated, having trimmed gains after their own recent rallies.
