TLDR
- Stock futures edged up on Friday as Wall Street kicked off 2026 trading following three consecutive years of double-digit returns
- The S&P 500 notched gains of over 16% in 2025, whereas the Nasdaq surged more than 20% for the full year
- Bitcoin was trading near $89,000 but stayed below the $90,000 mark after posting a 6% drop in 2025
- Bitcoin ETFs saw net outflows of $3.5 billion in November and $1.1 billion in December
- Gold and silver climbed to open 2026, building on their strongest annual showing since 1979
Stock futures moved higher early Friday as traders came back from the holiday hiatus. Dow Jones Industrial Average futures added 0.4%, and S&P 500 futures increased by 0.5%.
Nasdaq futures led the gains with a 1% rise. The tech-focused index got a boost from upbeat news out of Asia, which lifted a regional tech benchmark to all-time highs.
The 2025 trading year wrapped up with solid overall performance, even though it ended on a weak note. The S&P 500 recorded gains of over 16% for the entire year.
The Nasdaq Composite topped major indexes with a gain of more than 20%. This was the third straight year of double-digit percentage returns for Wall Street.
All Wall Street forecasters monitored by Bloomberg expect stocks to rally for a fourth consecutive year in 2026. Still, several risks lie ahead.
Stock Market Outlook and Federal Reserve
The artificial intelligence (AI) boom might slow down this year. U.S. economic conditions could change unexpectedly.
President Trump’s tariff policies are still unclear. Details on his most far-reaching tariffs may come to light this month.
The Santa Claus rally didn’t materialize for investors. The S&P 500 dropped nearly 1% during the traditional rally window.
This was the third straight year the Santa Claus rally period ended in the red. The rally usually spans the last five trading days of December and the first two of January.
Gold and silver kicked off the year with gains. Both precious metals built on their best annual performance since 1979.
The Federal Reserve lowered interest rates in December. Markets are factoring in two additional rate cuts in 2026.
Bitcoin Struggles as ETF Outflows Mount
Bitcoin climbed 1.5% to trade near $88,898 on Friday. The cryptocurrency stayed stuck in a tight range between $85,000 and $90,000.
The world’s biggest cryptocurrency dropped 6% in 2025. Bitcoin notched losses of over 20% in the fourth quarter alone.
experienced heavy outflows in the final months of 2025. Net outflows hit $3.5 billion in November and $1.1 billion in December.
Institutional demand slowed after robust buying earlier in the year. Many big investors moved into a consolidation phase after Bitcoin’s October high.
Bitcoin didn’t gain from the year-end rally that boosted stocks and gold. The cryptocurrency continued to focus on internal market factors instead of broader financial conditions.
Altcoins saw moderate gains on Friday. rose 1.6% to $3,025.92, and XRP added 1.7% to $1.87.
