Review & Preview: A Silver Lining

Dec 26, 2025 19:55:00 -0500 by Sabrina Escobar | #Markets #Review & Preview

Silver’s New Shine. Markets reopened as usual on Friday, but traders seemed content to keep their hands off the terminals and enjoy the postholiday haze.

Friday saw the lowest trading volumes of the year across both the New York Stock Exchange and the Nasdaq Stock Market, according to Dow Jones Market data. About 10.1 billion shares traded hands today, well below the year to date average daily volume of 16.7 billion.

The major indexes finished Friday about as flat as possible: The Dow Jones Industrial Average closed 0.04% lower, while the Nasdaq Composite was down 0.1% and the S&P 500 was off 0.03%.

Earlier in the day, both the Dow and the S&P 500 had been on track for another record close. By close, the only sectors in positive territory were materials, technology, real estate, and healthcare.

But as Barron’s’ Ben Levisohn points out, when it comes to the S&P 500, it isn’t the number of stocks that are up that matter, but which ones. Today, Nvidia’s 1% gain helped prevent a bigger slip.

Precious metals had a much more interesting day. Silver prices hit a record high, topping the $75 an ounce mark for the first time ever. Gold was up 1.2%. Both metals are on pace for their best years since 1979. The odds of lower interest rates despite an uptick in inflation and solid economic growth have bolstered investor demand for the precious metals, writes my colleague Martin Baccardax.

As the traditional inflation hedge, gold has been on a tear all year. Silver’s gains are much more recent. Michael Gayed, portfolio manager of The Free Markets ETF and author of the Lead-Lag Report, notes that silver tends to outperform when “fear broadens beyond prices and into growth, liquidity, and financial stability.” He adds:

Silver is not forecasting higher consumer prices. It is signaling distrust. Distrust in growth projections that rely on fiscal expansion. Distrust in monetary policy that pivots too late or too early. Distrust in financial assets that depend on stable liquidity and steady earnings growth.

Ongoing tensions in the Middle East, unresolved conflicts in Eastern Europe, and trade frictions have added fuel to the rally, Gayed writes, while currency weakness has made metals more attractive to global buyers in regions where confidence in domestic markets have eroded, like China.

On the topic of China, Beijing hit U.S. defense companies with sanctions on Friday in response to the Trump administration’s decision to sell more than $11 billion in weapons to Taiwan. Boeing, Northrop Grumman, and L3 Harris Technologies all closed in the red on the day, but the sanctions will likely have little impact on actual company revenue because few U.S. defense companies do big business with China.

Review & Preview is taking a brief hiatus next week. We’ll be back on Jan. 5. Meanwhile, we invite you to fill out our annual forecasting quiz for a chance to win a two-year subscription to Barron’s and lunch in New York with a staff member of your choosing.

Happy New Year, everyone!

Company

Last

Chg

Chg%

Dow Jones Industrial Average

48,461.93

-249.04

-0.51%

S&P 500 Index

6,905.74

-24.20

-0.35%

NASDAQ Composite Index

23,474.35

-118.75

-0.50%

Market Data as of

The Hot Stock: Target +3.1%
The Biggest Loser: Moderna -4.7%

Best Sector: Materials +0.6%
Worst Sector: Consumer Discretionary -0.4%

Created with Highcharts 9.0.1Friday, Dec. 26Index performanceSource: FactSetAs of Dec. 30, 3:20 p.m. ET

Created with Highcharts 9.0.1Dec. 30-0.4-0.3-0.2-0.100.10.2%S&P 500Nasdaq CompositeDow industrials

This Weekend’s Magazine

The Calendar

The National Association of Realtors releases its Pending Home Sales index for November on Monday. Economists polled by FactSet expect the index to rise 0.8% from October’s 1.9% increase.

What We’re Reading Today

Barron’s Live returns Jan. 5. Barron’s Megan Leonhardt talks to James Knightley, ING’s chief international economist based in New York, about what’s ahead for the U.S. economy in 2026. They’ll break down how employment, inflation, economic growth, and the Fed’s rate policy will affect investors.