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December 23, 2025 – 11:44

(Bloomberg) — US stocks are holding their ground after a strong run as traders await some of the remaining data sets of 2025 to see whether they materially shift expectations for Federal Reserve interest-rate cuts.

The S&P 500 is poised to open little changed after a three-day rally that has pushed the benchmark within reach of a new all-time high. European stocks were buoyed by a 7% surge in the shares of Novo Nordisk A/S after the Danish firm won US approval to sell a pill version of its obesity drug Wegovy.

Gold extended its record-breaking run, setting sights on $4,500 an ounce. Silver and copper also advanced. US Treasuries steadied after days of losses, with the 10-year yield falling two basis points to 4.15%. The dollar, meanwhile, headed for its lowest level since October.

While Tuesday’s delayed third-quarter US gross domestic product print will likely be too dated to offer a clear read on current conditions, traders will also focus on consumer data after November showed a sharp slump in confidence.

Equity markets, however, have shaken off recent volatility as traders position for a seasonal year-end rally, with cooling inflation and mixed jobs data leading markets to price in at least two US rate cuts in 2026. Market watchers are now looking for another year of strong S&P 500 gains, supported by expectations for solid earnings and bets on policy easing.

“Volatility is sitting at the lows of the year, while credit spreads are among the most compressed we’ve seen in decades,” said Alberto Tocchio, portfolio manager at Kairos Partners. “That dynamic is helping sustain the current market bonanza, especially in an environment where trading volumes are falling sharply and many discretionary players are already on the sidelines.”

The yen led advances among major currencies against the dollar, rising past the 156 level after Finance Minister Satsuki Katayama issued a strong warning against speculators. The Swiss franc also gained significant ground.

Those moves come as the dollar headed for its weakest annual performance in eight years, with the options market signaling that traders are bracing for further losses.

The currency is down 8.2% this year, on track for its biggest slide since 2017. Another modest dip would mark its worst year in at least two decades.

Options pricing has also turned more negative, with so-called risk reversals, which track positioning and sentiment, showing options traders are the most bearish in three months.

“The structural drivers of US dollar weakness remain intact,” wrote Patrick Brenner, chief investment officer of multi-asset at Schroders Plc. “Institutional credibility continues to erode, fiscal deficits are widening, and global reserve managers remain steady buyers of gold rather than US dollar assets.”

Brent was near $62 a barrel after rising about 5% over the previous four sessions as the US continued its blockade of crude shipments from Venezuela.

Corporate News

Novo Nordisk A/S won approval to sell a pill version of its blockbuster obesity shot Wegovy in the US, a crucial step in its effort to defend its market share from rival Eli Lilly & Co. Larry Ellison is throwing his personal fortune behind Paramount Skydance Corp.’s bid for Warner Bros. Discovery Inc., aiming to give his son’s company an advantage in a fiercely contested takeover battle with Netflix Inc. Equinor ASA and Orsted A/S said they are engaging with US authorities over security concerns tied to their offshore wind projects, after the Trump administration issued another round of work suspension orders. Some of the main moves in markets:

Stocks

The Stoxx Europe 600 rose 0.2% as of 10:43 a.m. London time S&P 500 futures were little changed Nasdaq 100 futures were little changed Futures on the Dow Jones Industrial Average were little changed The MSCI Asia Pacific Index rose 0.7% The MSCI Emerging Markets Index rose 0.2% Currencies

The Bloomberg Dollar Spot Index fell 0.4% The euro rose 0.3% to $1.1797 The Japanese yen rose 0.7% to 155.98 per dollar The offshore yuan rose 0.2% to 7.0157 per dollar The British pound rose 0.3% to $1.3504 Cryptocurrencies

Bitcoin fell 0.8% to $87,540.85 Ether fell 0.7% to $2,966.59 Bonds

The yield on 10-year Treasuries declined two basis points to 4.15% Germany’s 10-year yield declined three basis points to 2.87% Britain’s 10-year yield declined three basis points to 4.51% Commodities

Brent crude rose 0.2% to $62.21 a barrel Spot gold rose 0.9% to $4,483.13 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Vassilis Karamanis and Alice Atkins.

©2025 Bloomberg L.P.