The S&P 500 (^GSPC +0.46%) rose 0.46% to 6,909.79 near record territory, the Nasdaq Composite (^IXIC +0.57%) gained 0.57% to 23,561.84 on tech and healthcare strength, and the Dow Jones Industrial Average (DJINDEX: ^DJI) edged up 0.16% to 48,442.41 in quiet holiday trading.
Market movers
Obesity-drug leader Novo Nordisk (NVO +7.42%) advanced on FDA approval of its Wegovy pill, lifting healthcare sentiment, while software giant ServiceNow (NOW 1.47%) slid nearly 3% after unveiling a $7.75 billion deal for cybersecurity firm Armis, pressuring large-cap software within the Nasdaq.
What this means for investors
Economic momentum remained firm, with third-quarter GDP growth of 4.3% supporting risk appetite as markets held near record levels. For investors, the takeaway is less about short-term momentum and more about policy expectations, as resilient growth gives the Federal Reserve room to remain patient on rate cuts while forecasts extend into 2026.
Mega-cap technology and AI stocks remain the primary drivers of index performance, a dynamic that can lift indexes while masking thinner participation. Healthcare strength following Novo Nordisk’s Wegovy pill approval reflected investor interest in businesses with more predictable demand as questions around rates and growth persist.
Market mechanics are increasingly shaping the near-term picture. With holiday schedules thinning volume, price action is more easily driven by positioning, making daily moves a less reliable signal. Investors are likely to look past short-term fluctuations until markets reopen fully, when upcoming economic data and early-year earnings guidance should provide a clearer test of whether the rally can extend beyond its current leaders.
