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Wall Street Holds Steady as S&P 500 Hits Record Ahead of Christmas Break

Market Snapshot – December 24, 2025 Dow Jones Futures: Flat at 48,735 points S&P 500 Futures: Near 6,957 points, little changed after Tuesday’s record close Nasdaq 100 Futures: Slight dip of 0.1% to 25,796.5 points S&P 500 Index: Closed Tuesday at 6,909, its latest all-time high Key Drivers Robust economic growth continues to fuel investor optimism. Seasonal “Santa Claus rally” has lifted stocks for four consecutive sessions. Markets will close early today at 1 p.m. EST and remain shut tomorrow for Christmas Day. Traders remain cautious about inflation and potential Federal Reserve rate cuts in 2026. Quick Take Wall Street enters the holiday season on a high note, with the S&P 500 near the 7,000 mark and futures showing little movement. The shortened trading session means liquidity will be thin, amplifying small moves. Still, the overall tone remains upbeat, with investors betting that the year-end rally will carry into the final days of 2025.

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Global Retaliation: Allies and China Strike Back Against Trump Tariffs

In a dramatic escalation of trade tensions, China, Canada, and Mexico have vowed swift countermeasures in response to newly imposed tariffs by U.S. President Donald Trump. The tariffs—set at 25% on imports from Canada and Mexico and 10% on Chinese goods—were defended by Trump as necessary actions to curb the influx of illicit drugs and illegal immigration.

Canadian Prime Minister Justin Trudeau declared that his government would retaliate by imposing 25% tariffs on up to C$155 billion (approximately US$106 billion) of American products, targeting items ranging from consumer goods to industrial materials. Similarly, Mexican President Claudia Sheinbaum announced that her administration was preparing both tariff and non-tariff measures to defend national interests, while urging the United States to resolve its domestic issues through dialogue rather than punitive trade actions.

Meanwhile, China has taken a strong stand against what it calls a “violation of international trade rules.” The Chinese Ministry of Commerce confirmed that Beijing would file a lawsuit at the World Trade Organization and implement “corresponding countermeasures” to safeguard its economic interests .

These swift responses by the affected nations underscore the high stakes of the current trade dispute, with experts warning that the measures could set off a broader trade war. As both sides brace for potential economic fallout, industries spanning from automotive to agriculture are already bracing for increased costs and supply chain disruptions.

The global community now watches closely as these diplomatic and economic skirmishes unfold, with many calling for a return to negotiations to avert long-term damage to the international trading system.

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