Markets Daily Dec 22: Tech Leads Gains as Gold Hits Record Highs

Dec 22 - Daily Market Updates

Markets Daily | Broad Market Update

A calmer tone is setting in as the holiday week gets underway. US equity futures are firmer with technology leading, European benchmarks are little changed, and Asia finished broadly higher. Safe-haven demand and rate-cut expectations are keeping precious metals supported, while government bond yields are edging up but remain contained.

Market snapshot (as of 05:46 am ET; indicative)

Nasdaq 100 futures: 25711.00
Stoxx Europe 600: 586.3
US 10-year Treasury yield: 4.165%
Spot gold: up 1.6 % at a record high
Nikkei 225: 50402.39

Opening take

Equities: Technology strength is helping US futures retrace recent weakness, with global risk appetite improving. Europe is trading in a narrow band on lighter volumes ahead of holiday closures. In Asia, markets most exposed to the AI cycle outperformed, and Japan extended gains to fresh highs.
Rates: Treasury yields are slightly higher into a data-heavy Tuesday, but the curve remains rangebound as investors balance disinflation progress with the timing and pace of policy easing in the year ahead.
Commodities: Gold and silver are marking fresh peaks on a mix of geopolitical caution and softer real-yield expectations. Copper remains elevated on tight supply and structural demand themes. Crude oil is firmer amid ongoing supply headlines and geopolitical risk.

Regional roundup

United States: Risk-on tone is concentrated in mega-cap tech and the broader AI ecosystem, with sentiment aided by resilient earnings expectations into next year. Cyclical pockets remain sensitive to the rates path and growth signals from incoming data.
Europe: Headline indices are modestly softer as defensives lag and traders pare exposure into the holiday. Energy and basic resources are underpinned by commodity strength, while rate-sensitive segments fluctuate with bond moves.
Asia-Pacific: Gains were led by Japan and Korea on chip- and AI-related momentum. Select China-linked assets stabilized as policymakers continue to support growth and pockets of real estate credit stress see incremental relief.

Credit and FX

Credit spreads are steady near recent tights, reflecting benign default expectations and healthy demand for quality carry.
The US dollar is broadly stable; most major pairs are confined to recent ranges in thin pre-holiday trading.

Corporate currents

Deal activity in software and data services remains a feature as sponsors and strategics pursue scale and recurring revenue exposure.
Defense, space, and dual-use technology names continue to attract attention amid rising government outlays and a shift toward agile, software-enabled systems.
Semiconductor supply chains remain in focus as high-bandwidth memory and data center build-outs drive order visibility for 2026.

Themes to watch

AI and productivity: Market leadership remains concentrated, but investors are watching for broader earnings diffusion as capex is monetized.
Policy path: Markets are pricing easing in 2026; any upside surprise in inflation or labor tightness could complicate timing.
Commodities and inflation mix: The rally in precious metals and industrial inputs is supportive for miners but could rekindle cost concerns if sustained.
Positioning and sentiment: Strategist targets for major US benchmarks are tightly clustered, signaling confidence but also a risk of consensus crowding.

The week ahead (key highlights; holiday-adjusted)

Monday: US—Chicago Fed National Activity Index.
Tuesday: Europe—new car registrations. US—Q3 GDP update, November industrial production, durable goods orders, consumer confidence.
Wednesday: Mexico—unemployment; Taiwan—industrial production; US—initial jobless claims. Early close for US and many European markets (Christmas Eve).
Thursday: Christmas Day—markets closed in the US, Canada, and most of Europe.
Friday: Japan—Tokyo CPI, unemployment, industrial production, retail sales. Boxing Day closures across the UK, Canada, Australia and parts of Europe.

Sector check

Tech: Leadership intact; focus on AI infrastructure, memory, and cloud spend visibility.
Materials: Precious metals and copper strength spotlight miners with quality balance sheets and low-cost assets.
Energy: Crude sensitive to headlines; integrateds and services watched for capital discipline and free cash flow.
Financials: Stable credit backdrop supportive for lenders and insurers; rate path remains the swing factor for net interest margins and valuations.
Consumer: Confidence data and holiday spending updates will inform the durability of services demand into the new year.

Risk management note

Liquidity is typically thinner into year-end, which can amplify moves around data releases and headlines. Diversification and disciplined rebalancing remain important as markets transition into 2026 with elevated expectations for both earnings growth and policy support.

This commentary is for information purposes only and does not constitute investment advice or a recommendation to buy or sell any security or strategy.

Disclaimer:

Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. The content of the Website must not be construed as personal advice. For retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin.

Rolling Spot Contracts and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of our retail client accounts lose money while trading with us. You should consider whether you understand how Rolling Spot Contracts and CFDs work, and whether you can afford to take the high risk of losing your money.