What is the Santa Claus rally and why does it matter?

It is the last five trading days of December and the first two of January, a period that often sees gains. It matters because flows, positioning, and lighter news can lift prices. Investors can use it to top up core holdings, but still manage risk.

Is the S&P 500 today near record highs?

Yes, the index is trading close to recent peaks, with stocks near records across major benchmarks. That supports sentiment, but thin liquidity can produce quick reversals. Use limit orders, avoid chasing upside spikes, and focus on quality names or broad market funds.

How do Fed expectations affect the S&P 500 today?

When odds of quick rate cuts fade, valuations face a reality check, but steady growth and cooling inflation can offset that. The S&P 500 today tends to favour companies with strong margins and cash flow. Watch bond yields, they often guide day-to-day equity direction.

Should UK investors hedge currency on US equity exposure now?

There is no one-size-fits-all answer. If you expect a stronger pound, a hedge can protect GBP returns. If you see GBP weakness, unhedged exposure may benefit you. Many investors blend hedged and unhedged share classes and rebalance the mix quarterly.

Global Market Insights

^GSPC Today, December 27: Subdued trade, weekly gains start Santa rally

ByHuzaifa Zahoor December 28, 2025December 28, 2025

S&P 500 today traded in subdued fashion as the Santa Claus rally window opened, yet the index still delivered a weekly gain a little over 1%. Stocks near records kept buyers engaged, but light volumes after the holidays capped moves. For UK investors, quiet news flow, steady Treasury yields, and a firm pound argue for discipline. The S&P 500 (^GSPC) remains the global bellwether, and thin liquidity can swing prices late in December. We share what matters now and how to position into early January without taking on undue risk.