WEEKLY MARKET RECAP – DECEMBER 19, 2025

Major U.S. stock indexes declined early in the week before rebounding on Thursday and Friday. For the full week, the NASDAQ and S&P 500 posted marginal gains, while the Dow finished slightly lower. The S&P 500 and Dow both remained roughly 1% below the record highs reached on December 11.

A delayed labor market report delivered mixed signals, showing uneven job growth alongside the highest unemployment rate since 2021. The U.S. economy added 64,000 jobs in November, following a loss of 105,000 in October, marking the third monthly decline in employment over the past six months. The unemployment rate rose more than expected to 4.6%.

Stocks advanced on Thursday after inflation data came in below expectations, raising the possibility that the Federal Reserve could have additional flexibility to cut interest rates in 2026. The Consumer Price Index increased at a 2.7% annual rate in November, well under economists’ consensus forecast of 3.1%.

Precious metals continued to rally. Silver climbed above $67 per ounce for the first time on record, while gold surpassed a high set two months earlier. With less than two weeks remaining in 2025, silver was up more than 130% for the year, and gold had gained 64%.

Global central banks took divergent paths. Japan’s central bank raised its benchmark interest rate by a quarter point to 0.75%, the highest level in three decades, and signaled that additional increases may follow if economic growth remains on track. Meanwhile, the European Central Bank left its key policy rate unchanged.

Corporate earnings prospects remained strong. Analysts expect S&P 500 companies to deliver double-digit earnings growth for a second consecutive year, with FactSet projecting full-year 2025 profits to rise 12.1% compared with 2024. Energy is the only sector forecast to report an earnings decline.

U.S. companies also stepped up share repurchases in the third quarter after pulling back earlier in the year amid tariff-related uncertainty. Buybacks among S&P 500 firms totaled $249 billion from July through September, more than 6% higher than the prior quarter, according to S&P Dow Jones Indices.

Looking ahead, the government is scheduled to release its long-delayed initial estimate of third-quarter economic growth on Tuesday. The report comes more than six weeks late due to the recent government shutdown. After contracting in the first quarter, U.S. GDP grew at an annualized rate of 3.8% in the second quarter.