Market Update: December 2, 2025
U.S. markets just delivered the kind of week that reminds investors why “don’t fight the Fed” is more than a cliché. Equities, bonds, and commodities all caught a bid as expectations for a December rate cut firmed up and investors rotated back into growth and risk assets.
U.S. stocks rebounded strongly, with major indices reversing the prior week’s losses and the S&P 500 extending its streak to seven consecutive positive months, even if November’s gain was only marginal. Every sector finished in the green, led by communications, consumer discretionary, and technology—helped by strength in mega-cap names and renewed enthusiasm around AI and chip innovation. More defensive pockets like health care, staples, and real estate also participated, though to a lesser degree, while energy lagged despite modestly higher oil prices as supply remains ample.
Fixed income joined the rally as Treasury yields moved lower on increasingly dovish Fed commentary, boosting investment-grade, high yield, and floating-rate corporates alike. Gold and other metals advanced alongside a softer U.S. dollar, underscoring how shifting rate expectations can quickly change the leadership across asset classes.
Looking ahead, the market remains data-dependent. Key releases on inflation and employment, along with the upcoming Fed meeting, could either validate the current optimism around rate cuts or reintroduce volatility if the narrative shifts.
For long-term investors, the message is to stay disciplined: avoid overreacting to week-to-week swings, stay diversified across sectors and geographies, and remember that even in a noisy macro environment, fundamentals and time in the market remain the most reliable drivers of long-run returns.
The information above has been obtained from sources considered reliable, but no representation is made as to its completeness, accuracy or timeliness. All information and opinions expressed are subject to change without notice. Information provided in this report is not intended to be, and should not be construed as, investment, legal or tax advice; and does not constitute an offer, or a solicitation of any offer, to buy or sell any security, investment or other product.