Stocks Drift Lower as Markets Digest 3Q GDP

Published as of: December 23, 2025, 9:12 a.m. ET

(Tuesday market open) Stocks looked to open slightly lower, following three straight days of gains, and seemed to take the latest economic reading in stride. Gross domestic product (GDP) grew 4.3% in the three months through September, the fastest pace in two years. That's up from 3.8% the prior quarter and much stronger than the 3% consensus forecast at Briefing.com.

The GDP data is backward looking, so its release may not move the market. Consumer confidence data is due at 10 a.m. ET. The markets will trade normal hours today but close at 1 p.m. ET tomorrow and remain closed Thursday for the Christmas holiday.

On Monday, the major indexes posted solid gains in light trading volume. The S&P 500 led the way among the majors, gaining 0.6%, and now sits just below its all-time high. The gains were broad-based, with consumer staples the only major sector to close lower. The Russell 2000 small-cap index outpaced the three major indexes, rising 1.2%, another indication that risk appetite is back on for the moment. Gold and silver closed at record highs, while oil and bitcoin rose.

1. Party like it's (not quite) 1999: The coming days will determine whether the tech-heavy Nasdaq-100 index will gain at least 20% for a third straight year—a run seen only three times in the past four decades. The last time? The years 2019-2021. The good times were interrupted by the 33% drop suffered in 2022, when the Federal Reserve was furiously hiking interest rates. But since 2019 we're still looking at the strongest sustained tech rally since the dotcom bubble. Using Monday's close for 2025, which put it up 21.2% on the year, the Nasdaq-100's annual gain has averaged 35% in the six years surrounding 2022. That doesn't quite compare to an average annual gain of 59% in the years 1995 through 1999, the year it rose an amazing 102%. But many of us know what followed: Another exceptional run after the bubble burst in 2000—a decline of 33% or more for three straight years. We'll see if the AI trade holds up better.
    
2. Tech investors to broaden horizons? If it continues next year, the current rotation out of tech stocks could benefit international stocks—which are poised for another strong year regardless—said my colleague Michelle Gibley, director of international equity research and strategy, Schwab Center for Financial Research. International stocks have outperformed the S&P 500 by a wide margin this year. With peak uncertainty over tariffs hopefully in the past, the Global Manufacturing PMI showed business confidence at a five-month high in November, Gibley noted, while increased fiscal support in major economies and the impact of interest rate cuts on businesses and consumers should provide support. MSCI EMU Index earnings are expected to grow by 11.6% on the year, while valuations in international stocks are attractive, so investors looking to move beyond the Magnificent 7 stocks next year may end up overseas, she said.
    
3. 'Tis the season to tokenize: While the staunchest cryptocurrency skeptics are still happy to call the coins essentially worthless, there seems to be little doubt about the value of blockchains, the technology underpinning crypto. Major financial institutions are rapidly finding uses for blockchains, with perhaps the biggest potential in tokenization, the process of converting assets such as stocks or even real estate into digital tokens on the blockchain that can be easily accessed and traded. Just last week JPMorgan Chase said it would launch its first tokenized money market fund on the Ethereum blockchain, and would use the Solana blockchain for a $50 million debt issuance for Galaxy Digital, a financial services and investment firm. JP Morgan is far from alone. The market for tokenized real-world assets topped $30 billion this year. In a letter to investors this year, BlackRock Chairman Larry Fink said tokenization would "democratize investing" by allowing for fractional ownership because assets could be sliced into "infinitely small pieces."

Nvidia (NVDA) rose about 1.5% in early trade after The Information reported that the company restructured its cloud division last week and would step back from directly competing with major cloud providers.

Drug maker Novo Nordisk (NVO) jumped 8% in pre-market trade after a pill form of its weight-loss drug Wegovy was approved by the Food and Drug Administration.

Gold futures (/GC) rose more than 1% to top $4,500 and silver futures jumped 2% in early trade, a day after both set record highs.

Defense contractor Huntington Ingalls Industries (HII) gained 5% in early trade following news reports that President Donald Trump planned to force defense industry executives to spend more money on weapons development.

Bitcoin futures (/BTC) fell less than 1% in early trade.

The ABCs of RMDs: Investors in their mid-70s are faced every year with taking required minimum distributions, or RMDs, from their tax-deferred retirement accounts. Rules around distribution timing and limits can be tricky, however. This guide and worksheet offers some clarity.

Trading the waves for the greens: The latest episode of Invested in the Game features a chat with Brendon Thomas, who left his role as a journalist covering the surfing beat to found The Golfer's Journal.

Back to basics: It's never too late to learn more about investing. This piece from SCFR gives beginners the answers to some of the most common questions.

Bitcoin futures (/BTC–candlesticks) rose Monday, pushing past $90,000 for the third time in six trading sessions before getting knocked back below that level. The coin has been bouncing between support and resistance for several weeks, repeatedly testing the 20-day simple moving average (blue line) but failing to close above it each time. The Relative Strength Index (lower pane) has turned upward but remains in neutral territory.

December 24: No major earnings or data expected. U.S. markets close at 1 p.m. ET.

December 25: No major earnings or data expected. U.S. markets closed for Christmas holiday.

December 26: No major earnings or data expected.

December 29: Pending U.S. home sales.

December 30: No major earnings or data expected.