Closing post (2): Wall Street closes at record high
And finally… two of the US stock market’s major indices have ended Christmas Eve at new closing highs.
The Dow Industrials and S&P 500 registered closing record highs in a broad rally during a holiday-shortened session, Reuters reports, in a positive start to the Santa Rally period.
The S&P 500 gained 0.32%, while the Dow finished up 0.6%.
We had a great Santa Claus rally today: DJIA up .6%, S&P500 up .3% (new record high!), NASDAQ Composite up .2%. Merry Christmas to all! @Team_Brighton https://t.co/8AXsnnXLHq
— George Conboy (@gtconboy) December 24, 2025
BREAKING: THE S&P 500 JUST HIT ANOTHER RECORD HIGH! 📈
— Peter Tuchman (@EinsteinoWallSt) December 24, 2025
The index has now gained over $1.6 TRILLION in market cap over the past five days 😳 pic.twitter.com/uxxBzslyNK
This is the fifth straight session of gains, helped by a rebound in AI-related names and optimism of cuts to US interest rates next year.
Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York, says:
“Yields are behaving, volume is light, but the same issues remain in place - AI is strong, there is talk of some positives here, new OpenAI and Meta models, that will get the chatter up.
“The Fed is unlikely to lower rates again, at least for a while. Who knows what happens when May comes and we get a new head of the Fed? But we have a very low probability of a January cut.”
In the meantime, it’s time to wrap this blog up (again). Merry Christmas!
Today’s Wall Street gains will reinforce the idea of a Santa rally – the concept that stock markets tend to move higher this time of year.
Bloomberg explains:
Investors hoping for a “Santa Claus Rally” — which typically encompasses the last five trading sessions of the year and the first two of the new one — saw the S&P 500 rising at the start of that period. Volume was almost 50% below the average of the past month. Bond yields and the dollar fell.
Updated
Today’s rally comes as many investors, analysts and economists have clocked off for Christmas.
But before they swapped their financial terminals for Die Hard, Love Actually and The Muppet Christmas Carol, many predicted that stock markets would keep rising in 2026.
UBS predict that “supportive economic conditions should underpin global equities, which are expected to rise by around 15% by the end of 2026,” with gains likely in the US, China, Japan, and Europe.
Double-digit gains are expected on Wall Street. Under UBS’s base case scenario, the US S&P 500 index ends 2026 at 7,700 points, which would be a gain of around 11%.
Deutsche Bank, who say 2026 promises to be anything but dull, have a year-end S&P 500 target of 8,000 points. Oppenheimer Asset Management are even more bullish; they set a year-end 2026 target of 8100 points for the S&P 500 index.
The storied Dow Jones industrial average is approaching its own record high today.
The DJIA is up 320 points, or 0.66%, at 48,763 points, near the intraday record high reached earlier this month.
Nike, again, is the top riser, with pharmaceuticals firm Merck (+1.5%) and investment bank JP Morgan (1%) close behind.
Today’s drop in US initial jobless claims (see earlier post) may have reassured traders that the US economy is in decent health.
Nancy Vanden Houten, lead economist at Oxford Economics, says:
“Despite ongoing seasonal volatility, initial jobless claims remain in ranges consistent with relatively steady labor market conditions and don’t change our outlook for the labor market or Fed policy.”
S&P 500 hits record high as Santa rally begins
The fabled Santa rally has reached the New York stock exchange!
The S&P 500 index of US company shares has hit a record high today, on a shortened Christmas Eve trading session. It touched a new intraday record high of 6,921.42 points, surpassing its previous peak in October.
The rally comes as investors continued to bet on more interest rate cuts from the Federal Reserve next year.
There’s also lingering relief that yesterday’s GDP report showed the US economy grew rather faster than expected in the July-September quarter.
Nike (+4.6%) are the top riser on the S&P 500, reversing some losses last week after it reported weak sales in China and an impact from Donald Trump’s tariffs.
It’s followed by chipmaker Micron which cheered Wall Street last week with strong financial results.
Closing post
Time to wrap up, for festive fun!
UK fashion retailers have launched early discounts after a mild autumn and winter for much of the country held back sales of knitwear and coats.
Hopes for a Santa rally on the London stock market were crushed today, with shares falling a little…
… although the pound hit a three-month high against the US dollar, before slipping back
Oil has hit its highest level in two weeks, as the US blockade of Venezuela leads to supply fears
BP is selling a $6bn stake in its engine oil business Castrol
We’ll be back on Monday 29th December – perhaps Santa might have reached the stock markets by then too.
Wishing you a very merry Christmas. GW
WH Smith to claw back £1.5m bonuses from execs
WH Smith will take back just over £1.5m in cash and shares bonuses paid out to its former chief executive and finance director and has slashed future bonus payments after an accounting scandal at its north American division.
The company said it had re-calculated awards for its 2024 and 2023 annual bonus payments and a 2021 long term bonus scheme to Carl Cowling, its chief executive who left last month in the light of the scandal, and Robert Moorhead, the former finance director who left in 2024.
This total overpayment to Carl Cowling was £516,000 in cash and 60,182 deferred bonus and long term bonus shares worth £374,933 at today’s share price. The overpayment to Robert Moorhead was £372,000 in cash and 43,739 in shares worth £272,493, the company said, in an annual report released shortly after stock market trading closed for Christmas.
The books, stationery, tech and toys retailer has also ditched the payment of an annual and long-term bonus to Carl Cowling, so that his annual pay for the year to August 2025 slumped to £724,000 from £2.7m a year before.
However, the report said Cowling would remain an employee until 28 February and then would receive ‘monthly salary payments’ until the end of his 12-month notice period although these might be ‘subject to mitigation.”
That would mean Cowling will receive up to his annual pay of £711,000, before benefits and pension, in monthly payments over the coming year and he is also holding on to further long term bonus shares which will vest in future years depending on WH Smith’s performance.
In addition the company said Robert Moorhead was no longer counted as a ‘good leaver’ and so his deferred bonus share payments, worth about £1.2m were now “expected to be cancelled in full”.
Updated
Calm trading on Wall Street
Over in New York, Wall Street trading has begun rather gently.
The Dow Jones Industrial Average, of 30 large US companies, has gained 20 points or 0.04% in early trading to 48,462 points.
The broader S&P 500 index is very marginally higher….
Updated
Back in the UK, the shops have reportedly been a little busier than last Christmas Eve.
MRI Software data shows that footfall across retailers up to 1pm today was 2.4% higher than a year ago.
That includes a 6.6% rise at retail parks, and a 1.1% increase on the high streets.
Updated
The number of Americans filing new applications for jobless benefits unexpectedly fell last week, new data shows.
Initial claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 214,000 for the week ending on 20 December, the Labor Department says.
That’s below the 224,000 expected by economists, and suggests the US employment market remains solid, as the initial claims total is seen as a proxy for company layoffs.
United States Initial Jobless Claimshttps://t.co/7p2FYAmZ3d pic.twitter.com/esxl8HLSGf
— TRADING ECONOMICS (@tEconomics) December 24, 2025
Updated
SolGold agrees to £867m takeover by top investor Jiangxi Copper
Shortly after the London stock market closed, a takeover deal for gold and copper miner SolGold was announced.
SolGold has agreed to be taken over by its top shareholder, Jiangxi Copper, in a deal valuing it at £867m
The London-listed miner said earlier this month it was inclined to recommend the offer, which was Jiangxi’s third proposal to acquire the company amid a global race for copper assets.
SolGold says the takeover should help it develop its Cascabel project – a South American copper and gold mine.
Dan Vujcic, CEO of SolGold, says:
“SolGold believes we have made substantial progress in the last year in developing the Cascabel Project and achieving key milestones, which has been reflected in SolGold’s strong share price performance.
Following extensive shareholder consultation following the receipt of the proposals from JCC, the Board believes all shareholders should have the opportunity to consider the Acquisition.
Having carefully considered the terms of the Acquisition, the SolGold Board believes it is in the best interests of shareholders and the company, and the SolGold Board have unanimously recommended the transaction to shareholders.”
More retail and hospitality firms in critical financial distress
There’s been a worrying increase in the number of retail and hospitality firms in financial distress.
The latest Christmas “Red Flag Alert” from Begbies Traynor shows that 1,947 general retail businesses and 1,034 bars and restaurants are in ‘critical’ distress – an increase of 16.7% against the same period last year.
Julie Palmer, regional managing partner at Begbies Traynor, explains:
“Even after the ‘golden quarter’ started better than expected, reduced consumer confidence and economic uncertainty in the run up to the Budget meant that spending from consumers took a real hit.
“Combined with this has been the delayed effect of Black Friday on retailers, with consumers holding back purchases until late November, which has led to a price war which has further reduced retailer margins.
“If anything, the situation with the hospitality sector is even more precarious – especially for bars and restaurants. Typically, this sector operates on narrow margins and even small changes to the cost base can have a devastating impact. This year the sector has dealt with a tidal wave of challenges including increases to both employers NI and the national minimum wage, as well as a cost of living squeeze reducing consumers disposable income. In addition, changes to the business rates regime will negatively impact this sector with more than 3,000 small pubs having to pay business rates for the first time.
The last-minute Christmas gift-buying frenzy may have reached its peak, but a quarter (25%) of festive shoppers will not be buying some of the presents they intend to give until after Christmas Day, a survey indicates.
Two-fifths (41%) of people surveyed for cashback website Rakuten said snapping up presents in the post-Christmas sales is a good way to save money, amid the squeeze on living costs.
And a third (32%) believe that the money saved by delaying Christmas shopping makes the tradition of opening gifts on Christmas Day worth changing.
Men are more likely to leave buying gifts until after Christmas Day than women, according to the research.
The survey indicated that shoppers expect to spend £163 on average in the Boxing Day sales, PA Media reports.
FTSE 100 closes in the red as Santa fails to show
The London stock market has just closed for the Christmas break, with no sign of the hoped-for Santa rally.
The blue-chip FTSE 100 index has ended today’s session down 18.5 points, or 0.2%, at 9,879 points, away from yesterday’s near-record closing high.
Fantasy gaming retailer Games Workshop (-1.46%) were the top faller, followed by precious metals producer Fresnillo (-1.4%) – both have had very strong years though.
The FTSE 250 share index, which is a better measure of the UK economy, dipped by 0.16% today.
Fashion retailers launch early Christmas discounts
Fashion retailers have launched early discounts after a mild autumn and winter for much of the country held back sales of knitwear and coats.
New Look, Boohoo and Sports Direct are all offering up to 70% on Christmas Eve while Next was set to launch its sale online at 4pm today with offerings of up to 50% – a level of discount matched by Hobbs, Topshop and Primark as well as John Lewis. While Marks & Spencer has held off discounting fashion, it has discounts of up to 40% on homeware and fragrance.
Despite hopes of a last minute rush, footfall on high streets has been down year-on-year matching a gradual trend as sales have shifted online. Visitor numbers were down 4.5% on Tuesday compared to the 23 December last year according to analysts MRI as a bounce back in cities including London offset by poor numbers in towns and shopping malls.
The latest sales tracker from advisory firm BDO found that overall sales were 1% for its set of mid-sized chains, which are led by fashion specialists, as a surge in late online orders offset poor sales in shops.
However, retail insiders say the mild wet season has not been good for the retail sector as it has combined with lacklustre consumer sentiment and fears about the economy to depress sales.
Updated
The copper price is enjoying a bit of a Santa rally.
Copper has hit a new all-time high near to $12,300 per tonne today, helped by supply worries, upbeat demand prospects and the weaker dollar.
TUC: More than a million workers will be at work this Christmas Day
Once the London stock market shuts at lunchtime, City workers will have a few days off before trading resumes on Monday 29th December.
But 1.2 million workers will be working this Christmas Day, reports the TUC, who are calling on everyone to spare a thought for these festive workers.
Many of them are carers, nurses and retail staff – and the clergy, of course! – says the TUC, with many in low-paid and insecure work.
TUC General Secretary Paul Nowak explains:
“For many of us, Christmas Day is a special time to spend with our nearest and dearest.
“So, we should all spare a thought for the people who will be hard at work, while we’re opening our presents, tucking into the turkey and relaxing with our families.
“Let’s stop and pay thanks to all those who keep the services we rely upon running during the Christmas break.”
He adds:
Many working on Christmas Day will be on zero-hours contracts – especially in sectors like social care and hospitality.
“But when the Employment Rights Act comes into force, exploitative zero-hours contracts should be consigned to history.
“Banning exploitative zero-hours contracts, sick pay for all, expanding parental and bereavement leave – these are just some of the watershed measures the legislation will now deliver.
As this chart shows, the oil price has been rising since Donald Trump ordered “a total and complete” blockade of all sanctioned oil tankers entering and leaving Venezuela on the evening of Tuesday 16 December:
Charalampos Pissouros, senior market analyst at Trading Point, says:
Gold and silver extended their rallies to fresh record highs, while oil recovered more ground, supported by the risk of supply disruptions from Venezuela and Russia. The metals may be attracting safe-haven flows as the latest escalation in the war between Russia and Ukraine dented chances of an imminent truce.
We have another Christmas Eve deal, also in the oil sector.
Petrofac has sold its North Sea business, called Asset Solutions, to Texas-based CB&I, saving thousands of UK jobs.
Asset Solutions operates, mainains and decommissions onshore and offshore energy assets. Its 3,000 employees are expected to join CB&I when the transaction closes, likely in the first quarter of 2026.
“Not much seemed to be stirring on Christmas Eve on the UK stock market as the FTSE 100 drifted a little lower,” says AJ Bell investment director Russ Mould.
“Weakness in the dollar, expectations for further US rate cuts, concerns about government deficits and debt in the developed world and geopolitical tensions have all been combining to put precious metals on a pedestal.
“However, having hit record levels overnight there were signs of a modest pullback this morning after stronger-than-anticipated data on the US economy. GDP coming in materially ahead of forecasts also helped to propel the S&P 500 to its own all-time highs but has reduced expectations for a near-term cut to US interest rates, which in turn led to mixed trading in Asia.”
Retail footfall fell 13% yesterday
Is the Christmas shopping period more of a whimper than a bang for Britain’s retailers this year?
Shopper traffic yesterday remained “stubbornly muted”, according to the latest footfall data from Sensormatic Solutions, which shows that visits were 13.1% lower than a year ago.
That suggests there hasn’t yet been much of a last-minute festive rush to the shops, which would disappoint retailers hoping for a sales surge.
Andy Sumpter, EMEA retail consultant at Sensormatic Solutions, says:
“After an unsettled start to the festive period - defined by shaky consumer confidence and spending hesitancy – retailers will be left feeling frustrated that footfall remains stubbornly muted, after many were pinning their hopes on a surge in store traffic yesterday.”
“With consumers leaving purchases right up to the wire, some retailers have released Boxing Day deals early to try and unlock that, so far, elusive consumer spending.”
Updated
Oil at two-week high amid heightened geopolitical tensions
The oil price has hit its highest level in two weeks, driven up by robust US economic growth and the risk of supply disruptions from Venezuela and Russia.
Brent crude has gained 0.5% this morning to $62.72 per barrel, the highest since 10 December.
Today’s gains come as the US continues to impose blockage sanctioned oil tankers entering and leaving Venezuela, leading to supply shortage fears.
Yesterday’s news that the American economy grew faster than expected in July-September could indicate higher demand for energy
IG analyst Tony Sycamore says:
“What we’ve seen over the past week is a combination of position squaring in thin markets, after last week’s breakdown failed to gain traction, coupled with heightened geopolitical tensions, including the US blockade on Venezuela and supported by last night’s robust GDP data.”
Oil has gained about 6% since December 16, when it plunged to near five-year lows.
Earlier this week China and Russia have expressed support for Venezuela, as Donald Trump ramped up his pressure campaign on the South American country’s president, Nicolás Maduro.
Updated
CDs return to Christmas shopping lists as gen Z embrace ‘retro renaissance’
It’s not too late to snaffle some last-minute Christmas presents (unless, ahem, you’re still toiling away at your desk).
And if you have a Gen-Zer on your list, you might want to check out ‘retro tech’ options.
Kit such as CD players and compact discs are back on Christmas lists this year amid a wave of 90s nostalgia.
John Lewis has upped its range of CD players to meet resurgent demand and says sales are up 74% in the last year. “We’re seeing something of a retro renaissance,” said Heather Andrews, one of its electricals buyers.
The format’s cause is being helped by the return of classic 90s acts such as Oasis and Pulp (ah, the good old days….). More here:
There’s also a quiet start to trading across Europe, at least at the stock markets which are open today.
The Stoxx 600 share is up a mere 0.04%, just below the record high touched yesterday.
The Paris, Amsterdam, Madrid and Brussels bourses are open today for a half-day (as is London), while Frankfurt, Milan and Zurich are closed.
Updated
FTSE 100 opens slightly lower
There’s no sign of the fabled Santa rally yet, with the London stock market a little lower in early trading.
The FTSE 100 share index has dipped by four points to 9,885 points, 45 points away from its all-time high.
Shares in BP have jumped by 1.5% at the start of today’s shortened trading session in London.
They’ve risen to $433.30, the highest in over a week, as investors welcome the sale of a 65% stake in its Castrol lubricants division for $6bn to cut its debt.
Pound at three-month high against weaker dollar
The pound has hit its highest level against the US dollar in three months.
Sterling hit $1.3534 early this morning, its strongest level since 24 September.
The dollar is weaker despite surprisingly strong US economic growth data yesterday, with traders anticipating a slowdown in the current quarter.
BP to sell 65% stake in Castrol to Stonepeak for $6bn
We have some Christmas Eve deal action – BP has agreed to sell a majority stake in its Castrol division to US investment firm Stonepeak Partners for $6bn.
The UK oil giant will divest a 65% stake in the lubricants unit, in a deal that values Castrol at $10.1 billion including debt.
This is a significant step in BP’ push to sell $20bn of assets, to reduce its debt pile – just days after it ousted its CEO, Murray Auchincloss, and appointed Meg O’Neill as its first female chief executive.
Carol Howle, interim CEO at bp, said:
“Today’s announcement is a very good outcome for all stakeholders. We concluded a thorough strategic review of Castrol, that generated extensive interest and resulted in the sale of a majority interest to Stonepeak.
The transaction allows us to realise value for our shareholders, generating significant proceeds while continuing to benefit from Castrol’s strong growth momentum. And with this, we have now completed or announced over half of our targeted $20bn divestment programme, with proceeds to significantly strengthen bp’s balance sheet. The sale marks an important milestone in the ongoing delivery of our reset strategy.
We are reducing complexity, focusing the downstream on our leading integrated businesses, and accelerating delivery of our plan. And we are doing so with increasing intensity - with a continued focus on growing cash flow and returns, and delivering value for our shareholders.”
Will we get a Santa Rally?
Today is traditionally the start of the Santa Rally period, the period at the end of the year when stock markets tend to rise.
However, Santa may be late this year – FTSE futures are down 0.07% this morning, a day after the UK’s stock market closed near to a record high.
Introduction: Gold, silver and platinum hit record highs
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Gold has climbed over the $4,500 per ounce mark for the first time ever, on the final trading day before Christmas.
As investors look for signs of a Santa Rally today, bullion has risen as high as $4,525 per ounce. Gold has risen for 11 of the last 12 days, taking its gains in 2025 to over 70%, its best year since 1979.
There’s a general frenzy in the precious metals market. Silver and platinum have also hit record highs, with silver reaching $72.16 an ounce and platinum climbing to $2,333.80 per ounce.
Investors are trying to hedge against geopolitical and trade risks, and also anticipate further US interest rate cuts in 2026; weakening the US dollar.
Ipek Ozkardeskaya, senior analyst at Swissquote, says:
We can say it: it’s been a golden year. Gold has renewed record highs more than 50 times this year and rose more than 70%, while silver’s gains have been even more impressive. The grey metal is up around 150% since January, driven by the so-called debasement trade — the idea that fiat currencies lose purchasing power over time due to heavy debt, persistent deficits, loose monetary policy and financial repression (rates below inflation). Add rising demand for silver and copper to limited supply, and the performance of these metals becomes easier to explain.
The reasonable answer is that the forces pushing metal prices higher remain firmly in place: heavy government debt into 2026 — check; persistent and widening deficits in developed markets — check; loose monetary policy and low real yields — check; geopolitical uncertainty — check; tight supply and rising demand — check. In theory, the medium- to long-term outlook remains positive.
The agenda
12.30pm GMT: London stock market closes early for Christmas!
1.30pm GMT: US weekly jobless claims
