The market moved in tandem with a volatile tech sector for most of the week, while a handful of key economic indicators were in focus as well. Software giant Oracle (ORCL) was one of the biggest players, dragging tech earlier in the week, but boosting the market toward the end after news that TikTok agreed to sell its U.S. operations to an Oracle-led investor group.
The Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) snapped a four-day losing streak on Thursday, with help from softer-than-expected inflation data, while the Nasdaq Composite Index (IXIC) jumped triple digits. At this point on Quadruple Witching Friday, all three major indexes are looking to extend their rally into the weekend. The Nasdaq is headed for a weekly win, the Dow is on track for a weekly loss, and the S&P 500 is waffling around breakeven for the week.
Noteworthy Analyst Calls
Streaming stock Roku (ROKU) jumped after landing a rare double upgrade from Morgan Stanley, with the firm expecting a strong year ahead for the advertising industry. Retailers Dollar General (DG) and Gap (GPS) were also upgraded, the latter by two separate analysts, while Generac (GNRC) was elevated to "overweight" at Wells Fargo due to AI center growth. On the flip side, ServiceNow (NOW) sank after new of a potential acquisition as well as a downgrade from Keybanc.
Top Stocks Seen This Year
As we end the last full trading week of the year, traders are tallying their wins and losses, looking to shape investment strategies for 2026. The best-performing Dow stock may surprise you, as its not Nvidia (NVDA) or any other tech stock. In fact, it was Caterpillar (CAT) who took the crown, on pace for its seventh-straight positive year and best yearly gain since 2017.
Over on the S&P 500 index, SanDisk Corp (SNDK) is in the lead for 2025. The equity has been rallying since breaking off of Western Digital Corp (WDC), which is actually the runner-up.
What to Expect Christmas Week
Unsurprisingly, it will be fairly quiet on Wall Street over the holiday-shortened Christmas week in terms of economic indicators, though some previously delayed data will still be rolling in. For those hoping for a Santa Claus rally, here are some reasons why the S&P 500 looks well-positioned for one, per Schaeffer's Senior V.P. of Research Todd Salamone. In the meantime, Senior Quantitative Analyst Rocky White looks ahead to the Nasdaq-100 rebalancing, and what that means for stocks, historically.
