The stock market ended the last full trading week of the year on a positive note as tech names extended their late-week rally against a backdrop of solid participation in the broader market. 

The S&P 500 (+0.9%) and Nasdaq Composite (+1.3%) both closed above their 50-day moving averages and finished with modest week-to-date gains. The DJIA (+0.4%) missed out on a gain for the week but still captured a gain today. The small-cap Russell 2000 (+0.9%) and S&P Mid Cap 400 (+0.9%) also notched solid gains. 

There was some doubt entering today's session about the major averages' ability to build on their tech-driven gains following yesterday's late-session weakness, but the top-weighted information technology sector (+2.0%) provided exceptional leadership. 

Micron (MU 265.92, +17.37, +6.99%) extended its post-earnings strength, while memory and storage peers like Sandisk (SNDK 237.61, +18.15, +8.27%) and Western Digital (WDC 181.08, +6.07, +3.47%) also advanced, building on their own rallies after Micron's earnings report featured a rosy industry outlook.

Oracle (ORCL 192.40, +12.37, +6.87%) was another top performer, rallying after headlines that TikTok signed a deal to sell its U.S. unit to a group of investors, including Oracle. Additionally, Michigan regulators approved a request from DTE Energy (DTE 127.64, -2.26, -1.74%) to power an Oracle and OpenAI data center, according to Bloomberg. 

NVIDIA (NVDA 180.99, +6.85, +3.93%) was a standout across mega-cap names, and the PHLX Semiconductor Index finished with a 3.0% gain, highlighting the improved sentiment across the AI trade today. 

Strength in the rest of the market was broad throughout most of the session but saw some late-session profit taking, similar to yesterday's action. 

Still, seven S&P 500 sectors finished higher, with several noteworthy performances in the mix. 

The industrials sector (+0.9%) had a solid day. Defense stocks rallied after President Trump told NBC News that he is not ruling out a war with Venezuela, sending the iShares U.S. Aerospace and Defense ETF 2.7% higher.

The health care sector (+0.7%) was another point of strength, supported by its pharmaceutical and biotechnology names. The White House confirmed nine new agreements with major pharmaceutical companies to lower prescription drug prices for Americans in line with the lowest prices paid by other developed nations. Gilead Sciences (GILD 124.29, +2.82, +2.32%), Amgen (AMGN 327.38, +2.96, +0.91%), and Merck (MRK 101.09, +0.40, +0.40%) were among the names that struck agreements. 

Meanwhile, the defensive utilities (-1.3%) and consumer staples (-0.5%) sectors lagged amid the rally in tech. Lamb Weston (LW 44.01, -15.32, -25.82%) was the worst-performing S&P 500 stock despite beating earnings expectations, increasing its quarterly dividend, and reaffirming its FY26 guidance. 

The consumer discretionary sector (-0.3%) also finished lower amid some notable earnings moves. Carnival (CCL 31.11, +2.77, +9.77%) outperformed after an EPS beat and upbeat FY26 guidance, sending other cruise line names such as Norwegian Cruise Line (NCLH 23.04, +1.41, +6.52%) sharply higher as well. 

NIKE (NKE 58.70, -6.92, -10.55%), however, lagged after disappointing guidance and soft sales in China.

Though not a member of the sector itself, KB Home (KBH 57.37, -5.38, -8.57%) also fell after its earnings report, which pressured other homebuilders such as D.R. Horton (DHI 147.17, -4.23, -2.79%) and home improvement names such as Lowe's (LOW 240.46, -7.25, -2.93%). 

While several sectors saw some modest selling pressure late in the afternoon, the information technology sector charted session highs through the close, underscoring a strong end to the week for the AI trade. The late-week advance also left the major averages technically better positioned after reclaiming key moving-average levels, which could factor into near-term positioning as the calendar turns.

U.S. Treasuries ended Friday with a small dip from their best levels of the week. The 2-year note yield settled up three basis points to 3.49%, and the 10-year note yield settled up four basis points to 4.15%. 

• Nasdaq Composite: +20.7% YTD
• S&P 500: +16.2% YTD
• Russell 2000: +13.4% YTD
• DJIA: +13.1% YTD
• S&p Mid Cap 400: +7.4% YTD

Reviewing today's data:

• November Existing Home Sales 4.13 mln (Briefing.com consensus 4.10 mln); Prior was revised to 4.11 mln from 4.10 mln
  • The key takeaway from the report is that home sales in November were aided by lower mortgage rates, yet limited inventory, combined with high prices, got in the way of stronger selling activity.
• December Univ. of Michigan Consumer Sentiment - Final 52.9 (Briefing.com consensus 53.3); Prior 53.3
  • The key takeaway from the report is that consumer sentiment has fallen sharply versus the year-ago period, with "pocketbook issues," affordability concerns, and labor market worries weighing on consumers' psyche.