U.S. equity markets were steady to modestly higher during a holiday-shortened week, with the S&P 500 and Nasdaq Composite closing slightly up as trading wound down ahead of Christmas.

Early support came from technology and AI-linked stocks as equity indices hovered near multi-year highs. Economic indicators pointed to a mixed backdrop: cooling inflation pressures alongside signs of labor-market softness reinforced expectations for a more accommodative Federal Reserve stance. Meanwhile, gold and silver reached record levels amid lingering geopolitical uncertainty, particularly around energy markets.

Next week, trading is expected to be lighter as markets transition into the New Year, with reduced volumes and a thin U.S. economic data calendar. Scheduled data releases include pending home sales and the Case-Shiller home price index, offering insight into housing conditions late in 2025. Additional indicators — such as durable goods orders, consumer confidence, and PMIs — may emerge toward week’s end or around year-end, providing early signals on demand and business activity heading into 2026. Corporate earnings activity is likely to be limited, though any guidance updates could affect specific sectors.

Given this economic backdrop, let us see how this impacts the performance of various investment strategies.