UiPath Jumps 6% on S&P 400 Inclusion, Tech Optimism Fuels Market Gains

U.S. stock markets closed early on Wednesday, December 24, 2025, at 1:00 p.m. ET in observance of Christmas Eve. The New York Stock Exchange and Nasdaq ended trading for the day before resuming on Friday, December 26. The market remained closed on Thursday, December 25, for Christmas Day, in line with the standard holiday trading schedule according to the schedule.

Trading was light, with many investors and analysts taking the early closure as a chance to prepare for year-end portfolio adjustments. The S&P 500 closed at a record high the day before, and the shortened session meant thin liquidity and limited price discovery. Despite the low volume, the market showed modest gains ahead of the early close.

The early closure came amid a backdrop of ongoing optimism for 2026, with investors looking toward the potential for further easing of interest rates and continued gains in AI-driven sectors. The Federal Reserve had recently cut rates, bringing the federal funds rate to a range of 3.50%-3.75%, and the market was pricing in further reductions early next year.

Market Movements and Key Stocks

UiPath (PATH) stood out as one of the day's top performers, rising nearly 6% after it was announced that the automation software company would be added to the S&P MidCap 400 index in January. The inclusion is expected to boost demand for the stock as index-tracking funds are required to purchase shares. The stock had been volatile in recent days, closing at $15.96 on Monday before surging nearly 7.7% in premarket trading.

Dynavax Technologies (DVAX) also made headlines, jumping nearly 38.5% after Sanofi agreed to acquire the vaccine maker for $15.50 per share. The deal, valued at around $2.2 billion, is expected to close in early 2026 and is seen as a strategic move for Sanofi to expand its immunization portfolio. The stock was one of the most actively traded names on Wednesday.

Nike (NKE) saw a more modest but notable rise, climbing over 4.7% after Apple CEO Tim Cook and other board members purchased shares. Cook, who is a lead director at Nike, bought $3 million worth of stock, signaling confidence in the company's long-term direction. The insider buying came as Nike has faced ongoing challenges in international markets and amid shifting consumer preferences.

Sector Performance and Broader Market Outlook

The broader market saw a mixed performance, with most major indices showing only modest gains. The S&P 500 edged up slightly, while the Nasdaq Composite and Dow Jones Industrial Average both posted small gains. Energy and gold sectors lagged, with the NYSE Arca Gold Bugs Index falling more than 2%.

Investors remained focused on the possibility of a Santa Claus rally, a seasonal trend in which the market tends to rise in the last five trading days of December and the first two of January. The S&P 500 has historically risen during this period, with the Santa Claus rally occurring roughly 79% of the time.

The market also digested recent economic data, including a surprise drop in initial jobless claims, which fell to 214,000 for the week ending December 20. The data reinforced the view that the labor market remains resilient, with no immediate signs of a slowdown. However, analysts noted that the figures were still within a range consistent with steady labor market conditions.

Looking Ahead

With the market closed on Thursday, investors will have a chance to reassess their strategies ahead of the new year. Friday's session is expected to be more active as traders return from the holiday break. The focus will likely shift to the Fed's upcoming communications and any new economic data releases in early January.

As the market closes out 2025, the year has been defined by resilience amid significant volatility. The S&P 500 is on track for a 17% gain, driven by strong performance in AI-related sectors and a more favorable interest rate environment. The coming year will be critical for investors as they assess the trajectory of the AI revolution and how central banks manage the next phase of monetary policy.