Traders will get some time off this week with the Christmas holiday ahead, though there is some economic data to watch for in the days to come. Markets will be closed Thursday and will wrap up early the day before. Stock markets will close at 1 p.m. EST on Wednesday, while bond markets close at 2 p.m. EST. Investors will still have a handful of economic reports to follow, including a first look at third-quarter gross domestic product (GDP).
GDP, Consumer Confidence Data Highlight Holiday-Shortened Week
A trio of reports delayed by the government shutdown are set to be released this week, led by the initial report on third-quarter GDP. Initially scheduled for release Oct. 30, the delayed report means that the Bureau of Economic Analysis will only put out two GDP reports for the third quarter two estimates and a final report1—rather than its usual three. After Tuesday’s GDP release, which follows second-quarter growth rebounding to 3.8% after a 0.6% decline in the first quarter as tariff threats pushed imports higher, the BEA is scheduled to release the final third-quarter GDP report on Jan. 22.
The report on durable goods orders for October, initially scheduled for a November release, is also set for Tuesday. Other delayed reports coming out that day include the Federal Reserve’s industrial production and capacity utilization data for both October and November. Tuesday’s December consumer confidence survey comes at its regularly scheduled time. Weekly jobless claims, due Wednesday, will also be in the spotlight following last week’s employment report, which showed that unemployment rose in November.
What analysts are saying about U.S. stocks
Raymond James: “Major indexes have been flattish since late October, trending around the technically important 50-DMA, but all three core indexes finished above this line at the end of the week, providing hope for a year end rally. The AI soap opera continued, causing daily volatility, but strong earnings, this time from Micron, eased fears by the end of the week.”
“It feels like the equity market has digested the buildout fears near term, with the next hurdle likely being late January 2026 capex guidance by major cloud vendors.”
Goldman Sachs: “Our baseline macro outlook is supportive for small-cap upside in early 2026.”
“However, we do not expect the Russell 2000 will meaningfully outperform then S&P 500 over the full course of 2026. Given current above-average valuations, our economists’ 2026 real U.S. GDP growth forecast of 2.6% would be consistent with a 12-month return of roughly 10% for the small-cap index. While a decent return, this is similar to our 12% return forecast for the S&P 500, and small-caps generally have greater volatility than their larger peers.”
RBC Capital Markets: “We review and update our own top-down U.S. Equity Strategy recommendations for sectors over the next 6-12 months. The big things you need to know: First, we are upgrading S&P 500 Health Care to overweight from market weight. Second, we are upgrading S&P 500 Communication Services to overweight from market weight. Third, our other S&P 500 recommendations are unchanged. We remain overweight Financials and Materials, underweight Consumer Discretionary, and market weight all other sectors.”