Daily Market Digest: Precious Metals Break Records While Tech Giants Show Mixed Signals; Spot Silver Hits 83 USD as Year-End Trading Intensifies (December 29, 2025)

Silver Surge Dominates Global Commodities

Spot silver has entered uncharted territory, punching through the 83 USD per ounce threshold with year-to-date gains surpassing 185%—marking the strongest annual performance in nearly five decades. This historic rally reflects a confluence of speculative capital inflows and deepening supply chain constraints that have kept physical supplies tight.

The momentum proved particularly explosive last Friday, with silver experiencing a staggering 10% single-session jump. Such volatility caught the attention of CME, which responded decisively by raising performance margins across precious metals and other high-volatility futures contracts effective after the December 29 close. Gold, lithium, and silver all face tighter margin requirements, a structural adjustment designed to absorb potential flash crashes but likely signaling concerns about stretched positioning.

Behind the silver phenomenon lies a fundamental supply story: production bottlenecks, combined with accelerating demand from industrial and investment channels, have created a scarcity premium that may persist into 2026.

Fed Calendars and Policy Inflection Points Reshape Market Expectations

The S&P 500 has drawn within touching distance of the 7,000-point milestone, potentially establishing the longest monthly winning streak in eight years. Yet this triumph masks underlying rotations within the index—capital rotating from crowded mega-cap technology into undervalued sectors perceives a fundamental shift in Fed policy.

This week’s release of Federal Reserve meeting minutes will prove pivotal, offering crucial intel on the path for additional rate cuts and economic assessments. Markets are parsing every communication for clues on whether the Fed remains committed to easing cycles or pivots toward pause mode. Simultaneously, Trump’s forthcoming Federal Reserve chair selection looms as a major wildcard, with potential implications for monetary policy stance beyond 2026.

These developments have consolidated rate-cut expectations, sustaining equity upward momentum while catalyzing sector rotation away from growth-heavy technology names.

Tech Sector Enters Consolidation Phase

The Nasdaq declined 0.09% to 23,593.10 points, with year-to-date gains holding at 22% despite the day’s weakness. The “Magnificent Seven” exhibited divergent performance:

NVIDIA emerged as the session’s victor, advancing 1.02% to touch its highest level since mid-November, buoyed by continued enthusiasm around AI infrastructure buildout. The chip giant’s signal infrastructure upgrades—transitioning global data centers from AC to 800V DC power architectures—represents the most substantial facilities overhaul in history, potentially reshaping the competitive landscape for decades.

Tesla presented a stark contrast, declining 2.1% as investors grapple with electric vehicle market saturation and intensifying competitive pressures. Apple slipped 0.15%, Google dipped 0.22%, and Meta fell 0.64% amid persistent valuation debates. Microsoft and Amazon showed marginal movement, reflecting investor caution heading into year-end.

Metals Mining Gains Wind from Supply Disruptions

While semiconductor stocks managed a modest 0.05% sector advance, precious metals mining equities stole the limelight. Silvercorp Metals surged 3.61%, while Endeavour Silver climbed 2.96%, riding the coattails of spot silver’s extraordinary rally. The historic price action combined with supply disruptions and speculative positioning created a perfect storm for mining valuations.

Tariff Normalization and Fiscal Stimulus Shape Global Outlook

Bank of America’s leadership has projected that Trump administration trade policies may settle around 15% average tariffs for cooperative nations, with steeper rates applied to non-aligned partners. Exemptions for North American trading blocs could create asymmetric opportunities for supply chains strategically positioned near Mexico and Canada.

Concurrently, China’s fiscal conference outline reveals intensified consumption stimulus plans for 2026, including expanded trade-in programs for consumer durables. This dual stimulus environment—easing trade tensions combined with targeted consumer spending support—may bolster multinational earnings recovery and fuel demand for discretionary goods through the first half of next year.

Pharmaceutical Growth Unlocks Emerging Market Potential

Novo Nordisk achieved a milestone with NMPA approval for its long-acting growth hormone injection in China, targeting pediatric patients over 2.5 years. The clearance positions the company’s biopharma portfolio for accelerated revenue capture across Asia, reinforcing its global dominance in hormone therapy.

Banking System Risk Vigilance Resurfaces

JPMorgan has frozen accounts belonging to at least two stablecoin startups, citing exposure to high-risk geopolitical zones, though bank management characterizes the action as routine compliance rather than sectoral prejudice. The episode underscores the delicate balance financial institutions navigate when supporting emerging crypto infrastructure while maintaining robust risk controls.

Market Outlook: Cautious Optimism for Year-End and Beyond

As of December 28, the S&P 500 closed at approximately 6,930 points with a full-year gain of 17-18%, substantially fueled by artificial intelligence advancement narratives and Federal Reserve rate reductions. Both the Dow Jones and Nasdaq achieved weekly highs despite thin holiday trading volumes, reflecting underlying resilience masked by low liquidity conditions.

The market consensus suggests cautiously optimistic positioning for 2026, supported by potential catalysts including sector leadership from technology and AI, financial services revival, corporate tax optimization, and deregulation tailwinds. High-profile IPO events such as SpaceX’s potential public market entrance could inject additional momentum, while sustained corporate earnings surprises and benign inflation trends remain crucial monitoring variables.

Volatility will likely persist given the convergence of geopolitical uncertainties, policy transitions, and earnings revision cycles—yet the foundational narrative remains constructive for equity risk assets throughout the coming year.