US stocks rise as markets hope for ‘Santa Claus rally’

Wall Street stocks rose early Friday as markets factored in new commentary from a senior Federal Reserve official and expected lower trading volumes during the holiday season.New York Federal Reserve President John Williams told CNBC that Thursday’s reading showing lower inflation was likely “distorted” due to data collection difficulties during the government shutdown, dampening enthusiasm over a report that had fueled hopes for more rate cuts.

The comments come ahead of the final trading stretch of 2025, amid hopes for a ‘Santa Claus rally’.

About ten minutes into trading, the Dow Jones Industrial Average was 0.5 percent higher at 48,185.52.

The broader S&P 500 also rose 0.5 percent to 6,809.44, while the tech-rich Nasdaq Composite Index rose 0.6 percent to 23,144.81.

Williams’ comments “reduce enthusiasm” following Thursday’s report, said Sam Stovall of CFRA Research.

“There’s kind of a wait-and-see attitude right now,” Stovall said. “It’s a Friday before the shortened holiday week, so probably not many people want to take new positions.” Among individual companies, Nike fell 9.0 percent after reporting lower quarterly results, as the sports giant continues to be dogged by poor sales in China.

Oracle rose 5.4 percent as it moved closer to a deal to take a stake in TikTok’s U.S. operations. TikTok said Thursday it had signed a joint venture agreement with a group that also includes Silver Lake and Abu Dhabi-based MGX.