During the week of December 8-12, 2025, US equity markets displayed mixed results led by a negative performance from technology stocks. While the Dow Jones and Russell 2000 posted +1.00% to 1.25% gains— with Russel reaching new record highs—the S&P 500 and Nasdaq finished -0.60% to -1.60%, due to a sell-off in tech and AI stocks, led by concerns with spending and valuations, after Oracle reported weak quarterly results.
The Fed delivered its third consecutive 0.25% rate cut as expected, lowering rates to 3.50%-3.75%. Although markets initially rallied on a more dovish stance, with the announcement of a new T-bills monthly buying program of USD 40bn to address money markets liquidity issues, momentum faded due to concerns about the AI sector. Meanwhile, gold and silver continued with their strong performance year to date, with gains of 3-6%, while fixed income market saw yields 4-5bps higher, with credit spreads 1-2bps wider.
For the new week, important economic data will be released, including delayed reports due to the recent government shutdown. Main focus will be Payrolls data, October Retail Sales, Consumer Sentiment and the November Consumer Price Index (CPI).
