US equities experienced significant volatility during the week of December 15-19, 2025, ultimately ending with mixed results. The S&P 500 and Nasdaq managed to finish slightly positive for the week, +0.1% to +0.5%, while the Dow Jones declined 0.6%. Fixed income was stable, with credit spreads a touch wider.
Tech and AI stocks led the market down mid-week due to profit-taking and earnings concerns, particularly following Oracle's disappointing results. However, these sectors rebounded strongly late in the week, following other sectors, after better CPI inflation data and positive economic data.
The week's trading patterns continued to reflect a shift from mega-cap technology concentration back toward broader market participation. Concerns about AI spending returns on investment, and anticipation of future rate cuts from the Fed, should continue to drive overall market sentiment.
