Stocks enter final stretch of 2025 just off record highs: What to watch this week

Stocks rallied on Friday to cap a mixed week for the major averages in what served as the final full trading week of 2025.

For the week, the tech-heavy Nasdaq Composite (^IXIC) rose about 0.4%, while the blue-chip Dow Jones Industrial Average (^DJI) fell about 0.7% and the benchmark S&P 500 (^GSPC) closed little changed.

All three major indexes will enter the final seven trading sessions of 2025 within 3% of their record highs.

In the week ahead, those investors still around during the holidays will turn their attention to the prospects of a "Santa Claus rally," while a few pieces of economic data out on Tuesday will clean up some of the lagging data delayed as a result of the government shutdown.

Tuesday morning's read on consumer confidence from the Conference Board should be the key focus, with one of 2025's defining narratives centering on the K-shaped economy that has emerged among American shoppers.

Markets in the US will be open for half a day on Wednesday and closed on Thursday for Christmas. Many international markets will remain closed on Friday as well.