Market Update: December 8, 2025
Economic data releases showed signs of normalization last week, painting a mixed but resilient macro picture. U.S. indicators were generally positive—personal income, spending, ISM services, and industrial production all improved—helping to offset weakness in manufacturing and private payrolls. Globally, activity surveys pointed to steady service-sector momentum, though manufacturing remains a soft spot.
Equity markets were broadly positive earlier in the period but ended the week softer as investors locked in profits ahead of this week’s Federal Reserve meeting. The S&P 500 retreated roughly 2%, led lower by defensive sectors, while technology and energy names held firmer. Overseas, Europe and Japan posted modest gains—each up around 1%—with emerging markets outperforming on renewed AI optimism and a weaker U.S. dollar. South Korea and Taiwan benefited most from tech-linked momentum, offsetting losses in Brazil.
In fixed income, a pullback in bond prices reflected mildly higher yields as resilient data tempered near-term rate cut expectations. Still, dovish Fed commentary later in the week pulled Treasury yields back to 3.5% (2-year) and 4.1% (10-year). Global dynamics were mixed: Bund yields fell on safe-haven demand, while Japanese government bonds reached multi-decade highs following fiscal policy announcements.
Commodities saw divergent performance. Energy and industrial metals advanced as geopolitical tensions between Russia and Ukraine resurfaced, while oil settled near $60 per barrel. Natural gas jumped on early winter demand, but precious metals softened amid a stronger dollar.
Investors now turn to Wednesday’s FOMC decision, which could set the tone for year-end trading—and determine whether 2025 begins with policy easing or ongoing caution.
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.