Good Morning Investors!!! Markets wrapped up Tuesday on a high note, with the Standard & Poor’s 500 (S&P 500) (large U.S. stock index) notching a fresh record while investors kept one eye on the 10-year Treasury yield. Today brings a holiday-shortened session, plus the one data point that can still steal the mic: initial jobless claims at 8:30 AM ET. We also dig into nuclear power and uranium, which are back in the chat as power demand rises, and we spotlight Dynavax after a surprise buyout deal that lit up premarket trading.
Key Market DriversNew high, thin volume: The S&P 500 hit a record close Tuesday at 6,909, up 0.5%. A strong Gross Domestic Product (GDP) read showed 4.3% growth in the third quarter. Tech stocks led, while many smaller stocks lagged a bit.It matters because a record close can pull more money off the sidelines. Some call this stretch the Santa Claus rally (the market’s usual year-end bounce). Today is a short session and stocks stop trading at 1:00 PM ET, so even small news could move the market. 
S&P 500 1 Year Price Chart
Bond yields still run the show: The 10-year Treasury yield (the interest rate on a US bond) ended near 4.17% Tuesday. Investors are trying to guess what the Federal Reserve (Fed) (US central bank) does next after cutting rates to a 3.50% to 3.75% range this month. Markets price more Fed cuts in 2026 than the Fed has hinted, and that tug-of-war moves stocks day to day. The U.S. dollar is down about 10% this year; Asia was mixed and Europe was quiet, which can make foreign gains look bigger for U.S. investors. Oil’s rebound gets a supply scare: Oil prices rose again in early trade, with West Texas Intermediate (WTI) (US oil benchmark) near $58.6 a barrel and Brent (global oil benchmark) near $62.5 as of early this morning. It is the sixth straight gain, helped by Venezuela supply fears and Russia-Ukraine strikes. For investors, higher oil can push up gas prices and keep inflation sticky, which makes rate cuts harder. Energy firms tend to like firmer crude, while airlines and shippers do not. The bigger picture is still about supply, and thin holiday trade can make oil jumpy. Shoppers look cautious, not gone: U.S. consumer confidence slipped in December, with the index down to 89.1 as people worried more about jobs and pay. Yet holiday sales still rose about 4% from Nov. 1 to Dec. 21, based on card data, so the cart is not empty. Consumer spending is the main fuel for the U.S. economy. If nerves turn into less buying, stores and many other firms feel it fast, and the stock market feels it too. For now, steady sales hint that shoppers are just deal-hunting, not hiding. |
Thoughts from InvestorsGrow:
Jobless claims are the main data print today, so they may get extra attention in a short session. If claims come in above the forecast, it can hint the job market is cooling, which can weigh on stocks tied to growth. Bonds may do the opposite, since weaker job news can push investors to expect lower rates later.
The Treasury auctions are a quiet but real market mover. Strong demand can help yields drift down, which tends to feel good for stocks, mainly rate-sensitive ones like tech. With the early close, expect a bit of holiday “echo” where small headlines sound louder.
UPDATE: Jobless claims came in at 214,000 for the week ending Dec. 20, down 10,000 from last week’s 224,000 (as of 8:30 AM ET). That is a “still steady” read on jobs, so it can cool off the idea that rate cuts are right around the corner. One wrinkle is that continuing claims (people still getting benefits) rose to 1.923 million, which hints some folks are taking longer to find their next gig.
Nuclear Power and Uranium
This week’s spotlight is nuclear power and uranium. It covers nuclear plants and the uranium fuel they use. It is not flashy, but it is steady. It matters now because United States (US) (home market here) power use is rising again, pushed by artificial intelligence (AI) data centers, new factories, and more electric gear.
The market is watching demand and policy. The Global X Uranium ETF (URA)is up about 5% over the past week through Tuesday’s close. New federal support aims to keep older reactors running longer and help small modular reactors (SMRs) (smaller, factory-built reactors) get built, but it takes time.
Constellation Energy (CEG):
Constellation runs the largest US nuclear fleet, so it can sell clean power without waiting on new builds. It got a $1 billion federal loan tied to restarting a reactor at the former Three Mile Island site, now called the Crane Clean Energy Center, with a power deal linked to Microsoft and a 2027 target. Risks include outages, cost spikes, and policy shifts.
Cameco (CCJ):
Cameco is a top uranium miner and fuel supplier, so it sits near the start of the nuclear supply chain. It is also unique in that it owns 49% of Westinghouse, which does reactor service and parts, giving Cameco a second lane beyond mining. The key risks are mine hiccups and uranium price swings.
Rolls-Royce Holdings (RYCEY):
Rolls-Royce is known for jet engines, but its Rolls-Royce SMR unit is working on small modular reactors. The pitch is factory-style builds that could lower cost over time. It is a preferred partner for United Kingdom SMR plans and is also on Sweden’s short list, but the timeline is measured in years.
InvestorsGrow Takeaway:
Nuclear is a long game. If power demand keeps rising, steady sources can gain value, and an ETF can help you spread risk.
Dynavax Technologies (DVAX)
Dynavax Technologies makes vaccines. Its best-known product is HEPLISAV-B, a hepatitis B shot for adults. It is a two-dose series given one month apart, which can make it easier for people to finish. (Term: An adjuvant is a helper ingredient that boosts immune response.) Dynavax also sells a related immune-boosting ingredient used in some vaccines.
This morning, Sanofi said it will buy Dynavax for about $2.2 billion. Sanofi plans to pay $15.50 per share in cash, about a 39% premium to Tuesday’s close. Dynavax shares jumped about 37% in premarket. Big moves like that often happen when a deal puts a price tag on a company.
Why it matters: big drug makers are shopping for growth, and vaccines are a high-stakes aisle. Dynavax brings Sanofi a product that already sells in the United States (US) (home market), plus an early shingles vaccine program. One plain-English datapoint: Dynavax reported $90 million of HEPLISAV-B net product revenue in the third quarter, up 13% from a year ago. Next, watch whether the deal stays on track for a first-quarter 2026 close, and listen for any changes in vaccine rules that could shift demand.
InvestorsGrow Takeaway:
A buyout pop can feel like free dessert, but it often comes with a waiting period. After the jump, the stock may hover near the deal price while approvals get done. The red flags are simple: a deal that falls apart, or policy shifts that hurt vaccine demand. If you follow Dynavax, focus on deal odds and the strength of its core vaccine sales, not the day-to-day buzz.
