Stocks edge higher at midday; defensives lead, tech mixed

Introduction
U.S. equities are grinding higher into the holiday-shortened Wednesday session, with gains broadening beyond mega-cap technology as investors digest a cooler snapshot of weekly layoffs and a handful of stock-specific catalysts. According to Monexa AI intraday data at midday on Wednesday, December 24, 2025, the S&P 500 (^SPX) is up modestly, the Dow (^DJI) is outperforming, and the Nasdaq (^IXIC) is positive but lagging as semiconductors trade mixed. The tone is one of cautiously bullish risk-taking, tempered by thin volume typical of Christmas Eve and a volatility backdrop that keeps compressing.

Confidence got an early assist from the labor market tape. Initial jobless claims fell by 10,000 to 214,000 in the week ended December 20, while continuing claims rose, a combination suggesting layoffs remain subdued even as re-employment frictions persist, according to reporting by Reuters. On the micro front, Nike rallied after a notable insider buy, UiPath surged on an S&P index inclusion, and chip stocks diverged after headlines that Nvidia halted a test of Intel’s leading-edge 18A manufacturing process, as reported by Reuters. Those moving pieces shaped a session where defensives and banks led, Energy lagged, and leadership inside Tech fractured between memory strength and AI infrastructure hesitation.

Market Overview#

Intraday Indices Table & Commentary#

According to Monexa AI, the S&P 500 set a fresh intraday record at 6,936.63 and the NYSE Composite similarly tagged a new high at 22,242.24 before easing slightly. The Dow’s +0.64% midday lead reflects strong prints from Financials, select Industrials, and defensives, while the Nasdaq’s more muted +0.24% is consistent with a mixed semiconductor tape and softer moves in select software and AI infrastructure names. Volatility continues to compress into year-end: the CBOE Volatility Index (^VIX) slid to 13.46 at midday, marking a new 2025 low on Monexa AI’s tape, while the Russell 2000 volatility gauge (^RVX) dipped to 18.07. Turnover remains light: S&P 500 composite volume is tracking well below its 50-day average, in line with a holiday session and liquidity-sensitive intraday swings.

Beyond the headline indices, breadth is tilted positive across most sectors, with defensives and income proxies bid and Energy lagging. Index-level gains appear well-supported by staples, banks, and REITs, even as mega-cap Technology leadership is more selective than earlier in the quarter. Real Estate’s stock-level performance is notably firm across residential and industrial REITs, adding ballast to the broader tape.

Macro Analysis#

Economic Releases & Policy Updates#

The weekly labor-market update landed incrementally supportive. Initial jobless claims declined by 10,000 to 214,000 in the week ended December 20, beating the median forecast of around 224,000, while continuing claims rose, according to Reuters. The combination continues to signal a labor market that is cooling without cracking, a setup that has historically been constructive for credit-sensitive equities and banks. The intraday response was consistent with that read-through: Financials outperformed, and payments names traded higher as the Dow led major benchmarks, per Monexa AI.

The session is also shortened due to the Christmas holiday, with liquidity thin by late morning and expected to taper further into the early close, as widely reported by Bloomberg. Seasonality chatter around a “Santa Claus rally” is again part of the backdrop this week, but the operative drivers today are the claims print, index-level technical strength, and identifiable single-stock catalysts rather than any one macro headline.

Global/Geopolitical Developments#

Cross-border regulatory action created a discrete overhang for one megacap. Italy’s competition authority ordered Meta to suspend contractual terms that would restrict rival AI chatbots on WhatsApp, maintaining an open posture while authorities probe potential abuse of a dominant position. Reuters reported the move Wednesday morning, and shares of META were modestly higher intraday, suggesting investors are absorbing the news without extrapolating outsized financial impact in the near term. The development kept regulatory risk for large-cap internet platforms on the radar without materially shifting sector performance.

Commodity-linked narratives were more muted intraday. Energy equities underperformed despite mixed moves in the integrated oils and some resilience in renewables, reflecting a day in which stock-specific flows and year-end positioning overshadowed commodity price action. There were no major midday policy surprises altering rate expectations in the U.S.; the combination of subdued volatility and low volumes kept macro spillovers on a short leash into midday.

Sector Analysis#

Sector Performance Table#

According to Monexa AI’s sector monitor, Consumer Defensive is leading with a solid advance, consistent with heavyweights such as COST up +2.36%, TGT up +2.26%, and DLTR up +2.50% at midday. Utilities are firmer, with D up +1.16% and NEE up +0.41%, while EXC lags at -0.32%. Financial Services are up nearly half a percent, paced by large banks and payments—C up +2.88%, JPM up +1.21%, MS up +1.39%, and MA up +0.93%—offset by crypto-exposed COIN at -0.79%.

Technology’s +0.42% masks meaningful dispersion. Memory and equipment are bid—MU up +3.22% and LRCX up +1.12%—while AI infrastructure bellwether NVDA is down -0.52% after Reuters reported Nvidia halted a test run on Intel’s next-gen 18A process. Mega-cap platform AAPL is up +1.06%, buoyed in part by a high-profile insider purchase, while DDOG is off -2.68%, illustrating software-specific giveback into year-end. Communication Services is modestly higher with CMCSA up +1.34% and OMC up +1.31%, while GOOGL is down -0.34% and META up +0.34%, reflecting mixed internals in ad/search and social.

Industrials are broadly positive: UAL is up +1.30%, BA is up +0.95%, and LMT is up +1.01%, with URI up +0.96% as capex-sensitive names extend gains. Basic Materials is mixed, with steel dispersion—NUE up +1.24% versus STLD down -0.74%—and gold miner NEM off -0.55% intraday.

Real Estate shows a data discrepancy worth flagging. The sector table above reflects a marginal +0.01% gain from one aggregated feed, but stock-level readings on Monexa AI show broad REIT strength at midday: INVH up +1.92%, KIM up +1.67%, PLD up +1.31%, O up +1.35%, and AMT up +0.20%. Given the breadth across residential, retail, and industrial REITs, the stock-level internals suggest Real Estate is outperforming more than the sector aggregate indicates. We are prioritizing the live stock-level breadth for interpretation while still displaying the sector aggregate for completeness.

Energy remains the laggard. Upstream and oilfield names are under pressure—FANG down -0.73% and EXE down -1.01%—even as integrated oils XOM and BP trade mixed at +0.33% and -0.75%, respectively. Renewables are more resilient, with FSLR up +0.84%. The internal bifurcation indicates investors favor balance-sheet stability and energy-transition proxies over commodity beta into the thin holiday tape.

Company-Specific Insights#

Midday Earnings or Key Movers#

Nvidia and Intel headlines set the early tone for semis. Reuters reported that Nvidia has stopped a test using Intel’s 18A process for advanced chips, a setback for Intel’s foundry ambitions and a reminder of ongoing competitive dynamics around AI chip manufacturing. Shares of NVDA are down -0.52% at midday, while Intel (not shown in the Monexa AI stock list here) traded lower in sympathy per Reuters’ report. The market’s response is measured rather than frantic, consistent with the Nasdaq’s modest gain and the broader tech dispersion visible on Monexa AI’s heatmap.

Inside consumer, Nike’s surge stands out. Shares of NKE are up +4.84% at midday after reporting that Apple CEO Tim Cook doubled his personal stake—an insider purchase disclosed via regulatory filing that helped stabilize sentiment after recent weakness; coverage by Barron’s detailed the transaction’s size and timing. The move lifted brand and discretionary peers even as heavyweight TSLA slipped -0.74% and AMZN edged up +0.31%.

In software, UiPath is the day’s cleanest technical catalyst. PATH is up +7.17% after S&P Dow Jones Indices said the company will join the S&P MidCap 400 before the open on Thursday, January 2; Barron’s and other outlets noted the inclusion and attendant index-flow dynamics. The promotion bolsters near-term demand via passive inflows and window dressing into the effective date.

Banks and payments are firm, aided by the claims data and a constructive credit read. C is up +2.88%, JPM is up +1.21%, MS is up +1.39%, and MA is up +0.93%. The tape continues to favor scale franchises with diversified fee income as the volatility backdrop compresses. Crypto sensitivity is a drag: COIN is down -0.79%.

Defensive growth is doing its job. COST is up +2.36% and PG is up +0.91%, reflecting resilient staples demand and a bid for predictable earnings into year-end. Utilities are a similar port in the storm, with D up +1.16% and NEE up +0.41%, while EXC trails.

Within Healthcare, large-cap pharma and biotech are firmer on balance. MRK is up +1.61%, MRNA is up +1.25%, and UNH is up +1.05%, underpinning the sector. Notably, BMRN is down -1.65% midday after a sharp rally earlier this week tied to its announced $4.8 billion acquisition of Amicus Therapeutics; today’s pullback looks like digestion rather than a reversal of that M&A-driven repricing, based on Monexa AI’s intraday feed.

Industrials continue to reflect resilient travel and defense demand. UAL is up +1.30%, BA up +0.95%, and LMT up +1.01%. Capex-sensitive URI is up +0.96%. On the other side, public-safety tech AXON is off -0.42%, showing the day’s dispersion even among quality compounders.

Energy and Materials are where selectivity matters. FANG is down -0.73% and BP down -0.75%, while XOM is modestly higher at +0.33% and EOG up +0.30%. In Materials, NUE is up +1.24% and PPG up +1.02% even as STLD and NEM lag.

Extended Analysis#

Intraday Shifts & Momentum#

From the opening bell, the market showed its hand: buyers were present, but they rotated. The Dow led quickly as banks and defensives bid on the heels of better-than-expected jobless claims, a classic “good enough” macro outcome that lowers tail-risk without reigniting rate fears. The S&P 500 set fresh intraday highs, helped by staples’ and banks’ steady bid and the tailwind from a subdued volatility complex, with the ^VIX sliding to 13.46 by late morning according to Monexa AI. At the same time, the Nasdaq lagged as the semiconductor narrative fractured. Memory leader MU advanced +3.22% and equipment maker LRCX added +1.12%—signals that capex and inventory normalization continue to support parts of the chip complex—while NVDA eased -0.52% after Reuters reported the pause of an Intel 18A test. That divergence reinforced a day where stock selection trumped blanket sector calls.

Inside Technology, mega-cap platform dynamics mattered but didn’t dominate. AAPL rose +1.06% after a visible insider purchase, GOOGL slipped -0.34% even as reports highlighted a robust Google Cloud backlog and AI/security tailwinds, and META added +0.34% despite fresh regulatory scrutiny in Europe. Software dispersion remained a feature, with DDOG down -2.68% as investors preferred balance-sheet strength and near-term cash-flow visibility over high-beta growth into the early close.

The more interesting shift occurred beneath the surface: Real Estate’s live breadth flashed durable interest. Residential rental operator INVH jumped +1.92%, retail REIT KIM gained +1.67%, logistics leader PLD added +1.31%, and net-lease stalwart O climbed +1.35%. Even AMT, more idiosyncratic due to tower economics, was positive at +0.20%. Those moves line up with a day defined by a falling volatility regime, supportive labor data, and a preference for predictable cash flows and income proxies into year-end. The apparent discrepancy between sector-level aggregates and stock-level internals underscores the value of looking through to breadth when volumes are thin.

Consumer tape action also carried signal. COST at +2.36% and PG at +0.91% supported the S&P’s advance, and NKE at +4.84% reflected a well-telegraphed insider buy that investors used to reset near-term sentiment. Against that, TSLA at -0.74% and CCL at -1.14% reminded the tape that cyclicals are not moving in lockstep and that idiosyncratic drivers still matter in a liquidity-constrained session.

Payments and banks did what the macro told them to do. With claims easing and the growth backdrop avoiding extremes, MA up +0.93% and JPM up +1.21% reflected steady risk appetite. The fact that COIN trailed reminded investors that crypto-linked volatility is not a substitute for broad credit exposure inside Financials. The day’s setup left Financials as one of the cleanest sector expressions of the market’s “good enough growth, benign vol” theme.

Healthcare offered quiet but important confirmation. MRK up +1.61%, UNH up +1.05%, and MRNA up +1.25% show that defensive growth within Healthcare remains a core allocation in a low-volatility advance. The fade in BMRN at -1.65% after a prior M&A-driven rally was orderly, consistent with digestion rather than a change in narrative.

Energy, by contrast, has been the place to be careful. With FANG down -0.73% and EXE down -1.01% while XOM and EOG eked out gains, the message is that balance-sheet strength and capital return visibility are attracting marginal dollars, whereas commodity beta is not—at least not today. Renewables such as FSLR at +0.84% benefitted from the broader bid into energy transition exposure, but the sector’s leadership trend remains uneven.

Net-net, the session from the open to midday produced higher highs for the broad tape, lower lows for volatility, and a continued rotation that keeps indexes resilient even as Tech leadership narrows. For portfolio construction, the intraday evolution argues for maintaining exposure to market leadership while throttling concentration risk, layering in defensives and income proxies that are participating, and being selective in Energy and software until catalysts reset the risk/reward.

Conclusion#

Midday Recap & Afternoon Outlook#

By midday Wednesday, stocks are higher across the board, led by the Dow and undergirded by staples, banks, and a quiet but broad REIT bid. The S&P 500 touched a new intraday high according to Monexa AI, while the ^VIX fell to 13.46, its lowest level of 2025. The labor market tone from the morning’s claims report—lower initial claims and higher continuing claims per Reuters—offered a “not too hot, not too cold” backdrop that supported Financials and left policy expectations largely unchanged in a holiday-thinned tape.

Into the early close, the most realistic setup is more of the same rather than a regime change. The combination of thin liquidity, compressed volatility, and a modest list of macro catalysts tends to favor range-trading or a gentle drift in the prevailing direction. Watch the internals: if staples and banks continue to lead while Tech dispersion holds, the S&P’s advance can persist without relying on mega-cap concentration. Conversely, any reversal in Energy or a late-day fade in Financials could cap index-level gains given the Dow’s leadership profile today. With index-level records in play and volatility subdued, execution discipline into the close remains critical.

Key Takeaways#

A thinner, holiday-shortened session is not preventing new highs. According to Monexa AI, the S&P 500 and NYSE Composite set intraday records while the ^VIX slid to a new 2025 low, validating the market’s low-volatility, risk-on posture heading into the break. The quality of the advance looks healthier than earlier this quarter: defensives such as COST, PG, and Utilities are participating alongside banks like JPM and C, while Real Estate’s live breadth is stronger than some headline aggregates suggest.

Macro inputs were constructive without being euphoric. Weekly initial jobless claims fell to 214,000 and continuing claims rose, per Reuters, helping the Dow to lead as banks and payments traded higher. Global headlines mattered at the margin: Italy’s order affecting WhatsApp AI chatbots highlighted ongoing regulatory risk for META, but without derailing the sector’s modest gains.

Stock selection remains the day’s edge. Semiconductors and software diverged—MU advanced as NVDA eased on the Reuters-reported Intel test pause, and DDOG lagged while AAPL and NKE rallied on discrete catalysts. For the afternoon and the remainder of the week, maintaining core exposure to leadership while diversifying into defensives and income proxies, and being selective in Energy and high-beta software, aligns with the intraday signals.

Sources: Monexa AI intraday market data and sector breadth; Reuters on U.S. initial jobless claims (Dec. 24, 2025) and Nvidia/Intel 18A testing report; Barron’s on Nike insider purchase and UiPath’s S&P MidCap 400 inclusion; Bloomberg on early market close and holiday session conditions.