On December 22, 2025, Wall Street experienced notable movement as analysts released their latest recommendations on various stocks, reflecting a mix of upgrades, downgrades, and new initiations. The day followed a strong market rally on the previous Friday, attributed to the triple witching expiration of options and futures, which could signal the onset of a traditional December “Santa Claus” rally.
Market Overview and Stock Futures
In pre-market trading, stock futures were indicating a positive start to the week, buoyed by the significant gains across major indices. The tech-heavy Nasdaq led the charge, concluding the previous week at 23,307, a rise of 1.31%. The S&P 500 finished at 6,834, up 0.88%, while the Dow Jones Industrial Average closed at 48,134, reflecting an increase of 0.38%. The Russell 2000, which tracks small-cap stocks, closed at 2,529, rising 0.86% and nearing all-time highs.
Treasury yields increased across the board, with the 30-year bond closing at 4.83% and the benchmark 10-year note at 4.15%. This rise is attributed to a combination of profit-taking by traders, concerns over November’s inflation data, and mixed signals from Federal Reserve officials regarding potential interest rate cuts in 2026.
Stock Recommendations from Analysts
Among the significant analyst calls on December 22, Cummins Inc. received an upgrade from Market Perform to Outperform by Raymond James, with a target price set at $585. Ollie’s Bargain Outlet Holdings, Inc. was raised from Hold to Buy at Loop Capital, with a revised target price of $135, up from $130.
Volaris Inc. also saw an upgrade, moving from Neutral to Outperform by Bradesco BBI, which set a target price of $12.
On the other hand, several companies faced downgrades. Amicus Therapeutics Inc. was downgraded from Buy to Neutral by Citigroup, with a target price reduction to $14.50 from $17. Clearwater Analytics Holdings Inc. was cut to Market Perform from Outperform by William Blair, with no price target provided following a $24.50 all-cash bid for the company.
Additionally, Lamb Weston Holdings Inc. was downgraded to Neutral from Outperform at BNP Paribas, with a target price of $48. Sealed Air Corp. was also downgraded to Market Perform from Strong Buy at Raymond James, with no new target price as the company evaluates a possible take-private offer.
In terms of new initiations, Arcellx Inc. received an Overweight rating from Wells Fargo, with a target price of $100. BlackSky Technology Inc. was initiated with a Buy rating at Jefferies, targeting $23. Invivyd Inc. and Reeds Inc. were both started with Buy ratings at BTIG and Alliance Global, respectively, with targets of $10 and $4.75.
Overall, these updates from analysts reflect a dynamic market environment as investors navigate the final stretch of 2025. As retirement planning becomes increasingly relevant, tools like those offered by SmartAsset can assist individuals in evaluating their financial strategies.
As Wall Street approaches the holiday season, the anticipated “Santa Claus” rally could provide a significant boost to portfolios as trading volumes typically decline in the final weeks of the year.