Stock Market Summary – December 26, 2025

Nvidia (NVDA) announced the acquisition of assets from AI accelerator chipmaker Groq in a $20 billion non-exclusive licensing deal, which would be the largest of Nvidia’s 32-year history. Groq’s CEO and many senior leaders will join Nvidia to help enhance and scale the licensed technology. The move suggests a strategic response to a rapidly evolving AI market and has encouraged a number of analysts to maintain or recommend buying Nvidia shares. Their stocks rose by 1% to $190.53 following the announcement.

The US Department of Education rejected 327,955 requests by student loan borrowers to be enrolled in a new payment plan in August, potentially leaving them stuck in their current plan with higher monthly payments or in interest-accruing forbearance. At the end of November another 802,730 IDR plan applications remained pending.

According to midday market activity, Freeport-McMoran rose by 3.1%, Target rose by over 1%, and Coupang rallied by 8%. Nvidia rose by 1% following the Groq deal announcement as mentioned above. Airline stocks including United Airlines, American Airlines, and Delta lost 0.7%, 1.9%, and 0.6% respectively as a winter storm threatened to disrupt flights.

UBS listed Amazon, UnitedHealth Group, and PepsiCo amongst its top stock picks for the coming year. Amazon’s shares are expected to rise thanks to the company’s ongoing initiatives to diversify its revenue streams. UnitedHealth Group’s shares should rise due to its plans to reduce spending and cut commissions to improve profit margins. PepsiCo’s shares are expected to rise as it continues to innovate within its product range.

The S&P 500 achieved a new high on Friday, although it finally closed near the flatline along with the Nasdaq Composite. The Dow Jones Industrial Average fell by 20 points (0.04%). For the week, the S&P 500, Dow, and Nasdaq each rose by over 1%.

Two major risks for the stock market in the coming year include the potential for the Federal Reserve to cut interest rates less than the market is presently pricing in, and the risk of the Supreme Court striking down the tariffs President Trump imposed under the International Emergency Economic Powers Act.

In other news, the market week saw Nvidia acquire Groq, tariffs and supply chains putting pressure on prices for leather goods, heavy snow causing airlines to cancel over 1,200 flights, and tariffs and supply chain hesitations increasing the prices of leather goods. Amazon began to grow its various business verticals, UnitedHealth Group planned to cut spending and commissions, and PepsiCo aimed to innovate its product categories. The AI market is undergoing rapid changes, and Nvidia’s acquisition of Groq focuses on advancements in the AI market.