US Stock Market Today: Dow Jones Adds 0.4%, as Jobless Claims Shape Fed Rate Outlook

US stocks held near record levels in low-volume holiday trading on Wednesday as investors assessed labor data and the Federal Reserve outlook. The S&P 500 rose 0.2% and hovered near 6,920, while the Dow Jones added about 0.4% and the NASDAQ 100 stayed little changed. US cash markets planned an early close on December 24 and a full closure on Christmas Day.

Economic releases guided the session. Initial jobless claims fell to 214,000 for the week ending on December 20. The figure came in below expectations, while continuing claims rose to about 1.9 million. Mortgage applications also dropped for a second straight week, adding another sign of cooling demand.

S&P 500 Holds Near a Record in Holiday-Thinned Trading

Stocks opened with small moves after a four-session advance that pushed the benchmark to a fresh high last week. Traders kept position sizes modest as liquidity tightened. As a result, the index flipped between small gains and losses early.

Investors also watched for a seasonal “Santa Claus Rally,” which often spans late December and early January. However, lower volume limited follow-through in either direction. The Russell 2000 also edged higher as smaller companies tracked the broader market.

Global benchmarks also edged higher. The MSCI World Index added about 0.1%, while a mega-cap tech basket slipped. In Europe, the Stoxx Europe 600 stayed near flat.

Jobless Claims Support a Soft-Landing Narrative as Rate Bets Stay Firm

Bond yields changed little as traders digested the jobs data. The 10-year US Treasury yield held near 4.16%, and the two-year yield stayed around 3.52%. Overseas yields moved modestly as investors weighed the same rate signals.

Currency trading also stayed calm. A broad dollar gauge dipped about 0.1% as traders focused on rate cuts next year. The euro eased to around $1.1780, the pound held near $1.3508, and the yen strengthened to about 155.80 per dollar.

Markets continued to price roughly two quarter-point Fed cuts next year, which exceeds some officials’ projections. President Donald Trump renewed calls for lower rates and said he would choose a new Fed chair soon. Investors also tracked the debate over whether the Fed should revisit its 2% inflation target once inflation stabilizes.

Intel Drops, Nike Jumps, and Deal Headlines Keep Flow Moving

Company news drove the sharpest stock moves on an otherwise quiet tape. Intel fell about 1.6% after a report said NVIDIA paused tests tied to Intel’s manufacturing process for advanced chips. Nike climbed about 4.8% after a filing showed Apple CEO Tim Cook bought about $2.95 million of Nike shares.

Other assets reflected a cautious tone. West Texas Intermediate crude slipped about 0.1% to around $58.30 a barrel. Spot gold eased about 0.3% to roughly $4,470.99 an ounce after a recent record above $4,500.

Digital assets also traded lower. Bitcoin fell about 0.9% to $86,829.73, and ether dropped about 2% to $2,914.44. Dealmaking also stayed active into the final week of December, keeping single-name headlines in focus.

Other Corporate highlights 

• Sanofi agreed to buy Dynavax for about $2.2B, expanding its vaccines portfolio footprint.

• BP agreed to sell a majority stake in Castrol to Stonepeak to raise about $6B in cash.

• KKR and PAG agreed to buy Sapporo’s real estate holdings in a major Japan property deal.

• Honda will acquire LG Energy’s assets at their Ohio battery plant for about $2.9B.

• TEPCO plans to restart the Kashiwazaki-Kariwa nuclear plant, the world’s largest site.

• Jiangxi Copper agreed to buy SolGold in a deal valuing the miner at slightly above $1B.

• Haier Smart Home will sell a 49% stake in its India unit to Bharti and Warburg Pincus.

• UiPath rose after plans showed it will replace Synovus Financial in the S&P MidCap 400.

Overall, US markets ended the pre-holiday session steady, supported by resilient labor data and expectations that the Federal Reserve will begin easing policy next year.

Also Read: US Stock Market Today: Equities Hover Near Records as Solid Economic Data Reshapes 2026 Rate Outlook