The final full trading week of 2025 opened on a remarkably bullish note, as global markets embraced a “Santa Rally” fueled by cooling inflation data and a resurgence in AI-led technology leadership. On December 22, 2025, investors shrugged off earlier December jitters, focusing instead on the potential for a “soft landing” in the U.S. and continued liquidity support from major central banks. The narrative has shifted from inflation anxiety to growth optimism, with semiconductors and software giants anchoring the rebound across Western exchanges while Asian markets found relief in steadying currency values.
As we dissect the closing data from Monday, December 22, a clear pattern of “risk-on” sentiment emerges. Despite thinning holiday volumes, institutional desks remained active, positioning for 2026 amid a backdrop of stabilizing geopolitical tensions and a softening U.S. Dollar. From the historic highs in the PSX to the resilient tech bids in the Nasdaq, the global financial landscape is currently defined by a concentrated chase for quality growth and a strategic rotation into emerging market equities.
United States: Wall Street Heavyweights
DOW JONES Industrial Average
Index
Closing Value (Dec 22)
Change (%)
Dow Jones (DJI)
48,362.68
+0.47%
Economic Event: Market sentiment was bolstered by a lack of negative surprises in the morning’s durable goods report, which suggested that the U.S. industrial sector remains on a steady, albeit slow, growth path. The focus shifted to the upcoming PCE data, with investors betting on a print that confirms the Fed’s room for a January rate cut.
Fundamental Analysis: The Dow’s rise was largely defensive, led by blue-chip stability as investors rotated into high-quality value names like JPMorgan and Caterpillar. Strong year-end corporate earnings guidance from industrial leaders has helped maintain the Dow’s premium valuation despite higher-for-longer interest rate concerns earlier in the month.
Technical Analysis: Technically, the Dow is currently trading in a tight consolidation range just below its psychological resistance of 48,500. The 20-day Moving Average is acting as a firm floor, and the RSI remains in neutral territory at 58, suggesting there is still ample headroom for a breakout above 49,000 before the year concludes.
S&P 500 & NASDAQ Composite
Index
Closing Value (Dec 22)
Change (%)
S&P 500
6,878.49
+0.64%
NASDAQ
23,428.83
+0.52%
Economic Event: Renewed optimism in the semiconductor sector, sparked by Nvidia and Micron’s mid-day rallies, provided the primary catalyst for these growth-tilted indices. A retreat in the 10-year Treasury yield below 4.10% on Monday further eased the pressure on high-growth valuations, encouraging late-session buying.
Fundamental Analysis: The “AI Rebound” narrative is the dominant fundamental driver here, as Oracle and Nvidia regained ground lost during the early-December pullback. Investors are currently prioritizing “picks and shovels” AI plays, looking past short-term volatility toward the massive capex cycles projected for 2026.
Technical Analysis: The S&P 500 is hovering within striking distance of its record high (6,901), forming what looks like a classic “cup and handle” pattern on the daily chart. For the Nasdaq, the immediate resistance lies at 23,600; a successful flip of this level into support would signal a continuation of the bullish trend through the first week of January.
Asia-Pacific: Eastern Resilience
India: SENSEX & NIFTY 50
Index
Closing Value (Dec 22)
Change (%)
BSE SENSEX
85,567.48
+0.75%
NSE NIFTY 50
26,126.60
+0.61%
Economic Event: Indian markets surged on the back of significant FII (Foreign Institutional Investor) inflows totaling over ₹1,800 crore on the preceding Friday, which carried into Monday’s early trade. Domestic sentiment was further lifted by a sharp reversal in the Rupee’s slide, which stabilized near 90.50 against the USD.
Fundamental Analysis: Heavyweights like Infosys and Reliance Industries led the gains, reflecting a broader recovery in high-cap IT and energy sectors. The fundamental outlook for India remains robust due to strong domestic consumption data and a narrowing current account deficit, making it a preferred destination for year-end emerging market allocations.
Technical Analysis: Nifty 50 has successfully reclaimed the 26,100 level, turning a previous resistance zone into a support floor. The index is currently exhibiting a “bullish engulfing” pattern on the weekly scale, with technical targets now set at 26,500 if the current momentum in the banking sector persists.
China: SSE Composite
Index
Closing Value (Dec 22)
Change (%)
SSE Composite
3,917.36
+0.69%
Economic Event: China’s markets reacted positively to the PBoC’s (People’s Bank of China) continued liquidity injections via reverse repos, aimed at maintaining stable market conditions heading into the new year. Investors are closely watching for updates on fiscal support for the struggling property sector.
Fundamental Analysis: While the broader economy faces deflationary pressures, large-cap tech and state-owned enterprises (SOEs) are attracting “bottom-fishing” value investors. The CSI 300 outperformed the broader SSE, indicating that institutional money is flowing primarily into established, liquid leaders.
Technical Analysis: The SSE Composite is testing the 3,920 resistance line; a close above this on high volume could trigger a short-covering rally toward 4,100. Support remains firm at 3,850, though the overall trend remains capped by declining long-term moving averages.
Japan: NIKKEI 225
Index
Closing Value (Dec 22)
Change (%)
Nikkei 225
50,402.39
+1.81%
Economic Event: The Nikkei was the star performer in Asia on Monday, surging past the 50,000 milestone as the Yen’s volatility subsided. The market has finally priced in the Bank of Japan’s recent hawkish shift, shifting focus back to the strong export earnings of Japanese tech and auto giants.
Fundamental Analysis: Japan’s equity market is benefiting from a “valuation re-rating” as corporate governance reforms continue to drive higher dividend payouts and share buybacks. The Nikkei’s heavy tilt toward semiconductors makes it a direct beneficiary of the global AI sentiment rebound.
Technical Analysis: Breaking the 50,000 psychological barrier is a massive technical feat, potentially turning this level into a multi-month support floor. The index is currently overbought on the daily RSI (72), so a brief retest of 49,800 might occur before the next leg up.
European & Other Major Markets
Europe: STOXX 600 & Germany DAX
Index
Closing Value (Dec 22)
Change (%)
STOXX 600
588.20
+0.12% (est.)
DAX 40
24,263.56
-0.10%
Economic Event: European markets were relatively muted on Monday as the Eurozone’s flash PMI data continued to signal a contraction in manufacturing activity. However, the STOXX 600 reached a new high earlier in the day on expectations of aggressive ECB rate cuts in Q1 2026.
Fundamental Analysis: Germany’s DAX underperformed slightly due to its sensitivity to global trade tariffs and energy costs. In contrast, the broader STOXX index found support in the luxury and healthcare sectors, which are less sensitive to industrial cycles.
Technical Analysis: The DAX is currently oscillating near its 20-day EMA, showing signs of exhaustion after a 22% yearly gain. A consolidation phase between 24,000 and 24,300 is expected for the remainder of the week.
United Kingdom: FTSE 100
Index
Closing Value (Dec 22)
Change (%)
FTSE 100
9,858.70
-0.39%
Economic Event: The FTSE 100 dipped on Monday, weighed down by a slight strengthening of the Pound and cooling oil prices, which impacted the index’s heavy energy and mining components.
Fundamental Analysis: Domestic consumer confidence in the UK remains fragile, but the index is protected by its attractive dividend yields (approx. 4%) compared to global peers. Financials remained the only bright spot on Monday’s tape.
Technical Analysis: The index is struggling to hold above the 9,900 mark, with a series of lower highs forming on the hourly chart. Support is located at 9,800, which must hold to prevent a slide back to the 9,600 zone.
Global Snapshot Table
Country/Region
Major Index
Closing Value (Dec 22)
Day Change
USA
Dow Jones
48,362.68
+0.47%
USA
S&P 500
6,878.49
+0.64%
Japan
Nikkei 225
50,402.39
+1.81%
India
Sensex
85,567.48
+0.75%
Hong Kong
Hang Seng
25,801.77
+0.43%
Germany
DAX
24,263.56
-0.10%
UK
FTSE 100
9,858.70
-0.39%
S. Korea
KOSPI 200
582.73
+2.52%
France
CAC 40
8,120.32
-0.38%
Canada
TSX Comp.
32,000.00
+0.77%
The Bottom Line
The global market on December 22, 2025, serves as a testament to investor resilience and the power of the “AI-Growth” narrative. While European and UK markets showed some holiday-season fatigue, the explosive moves in Japan and South Korea, coupled with the steady climb of Wall Street, suggest that the path of least resistance remains upward. Investors should focus on high-liquidity assets and quality growth names as we transition into 2026, keeping a close eye on currency stabilization as the primary signal for continued emerging market outperformance.
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