December 23, 2025 Post-Market Recap: U.S. Indices Rise on Strong GDP Revision

On December 23, 2025, U.S. equity markets closed higher amid thin holiday trading conditions. The S&P 500 (6,909.78) gained 0.54%, the NASDAQ Composite (23,561.84) rose 0.66%, and the Dow Jones Industrial Average (48,442.42) increased 0.25%, while the Russell 2000 small-cap index underperformed, declining 0.30% [0]. Sector performance was mixed: Utilities (+1.487%) and Technology (+1.017%) led gains, driven by investor demand for defensive assets and AI-focused tech stocks respectively, while Energy (-1.626%) and Industrials (-0.245%) lagged, likely due to profit-taking [0]. Market breadth was positive, with advancers outnumbering decliners 2.15-to-1 on the NYSE and 1.61-to-1 on the NASDAQ [2]. Total trading volume (14.57B shares) was below the 20-day average (16.9B), reflecting reduced participation ahead of the Christmas holiday [2].

Key catalysts included the U.S. Bureau of Economic Analysis’s revision of Q3 GDP growth to 4.3% (annualized), beating the consensus estimate of 3.3%, with consumer spending (3.5%) driving the upside [1][3][0]. This data eased recession concerns and boosted risk appetite, while also giving the Federal Reserve flexibility on monetary policy. Mega-cap tech stock NVIDIA (NVDA) rose 3.0% in regular trading, fueling the Technology Select Sector SPDR (XLK)’s 1.017% gain [2].

After-hours trading saw notable volatility in small-cap names: Highway Holdings Ltd (HIHO) surged 50.6%, Citius Pharmaceuticals Inc (CTXR) gained 17.31%, and SanTech Holdings Ltd (STEC) declined 0.65% following a 59.38% intraday rise [4]. Limoneira Co (LMNR) reported earnings after-hours, but full results were pending at the time of analysis [3].

1. Economic Resilience Boosts Sentiment
   : The upwardly revised GDP and strong consumer spending data signaled robust economic momentum, easing recession fears and supporting equity gains [1][3][0].
2. Dual Sector Leadership
   : Outperformance by both defensive (Utilities) and growth-oriented (Technology) sectors reflected mixed investor sentiment—seeking safety amid holiday uncertainty while chasing AI-related growth opportunities [0].
3. Thin Volume Amplifies Movements
   : Below-average trading volume (14.57B shares) likely amplified price swings, a pattern that may continue during tomorrow’s half-day session [2].
4. Small-Cap After-Hours Volatility
   : Sharp moves in small-cap stocks like HIHO and CTXR underscored the liquidity risks associated with holiday trading conditions [4].

• Opportunities
  : The Technology sector’s momentum, driven by AI leaders like NVIDIA, could persist if economic data remains strong, offering growth potential for investors exposed to AI-related assets [2][0]. Defensive sectors such as Utilities may continue to attract safe-haven flows amid holiday market uncertainty [0].
• Risks
  : Thin holiday trading volume increases the likelihood of sudden, amplified price movements in response to unexpected news [2]. The Russell 2000’s underperformance (-0.30%) suggests lingering weakness in small-cap stocks [0]. The Energy sector’s decline (-1.626%) may signal profit-taking in cyclical sectors, potentially leading to further short-term softness [0].

• U.S. major indices (S&P 500, NASDAQ, Dow) closed higher; Russell 2000 small caps underperformed [0].
• Q3 GDP revised up to 4.3% (vs. consensus 3.3%) with 3.5% consumer spending drove gains [1][3][0].
• Top sectors: Utilities (+1.487%), Technology (+1.017%); bottom: Energy (-1.626%), Industrials (-0.245%) [0].
• Trading volume (14.57B shares) was below 20-day average (16.9B) [2]; VIX declined 5.6% to 14.08 [2].
• After-hours movers: HIHO (+50.6%), CTXR (+17.31%), STEC (-0.65%) [4]; LMNR reported earnings (results pending) [3].
• December 24 is a half-day trading session (closing at 1pm ET) with expected thin volume.
• S&P 500 closed near record highs (6,909.78); monitor whether it holds above 6,900 [0].