Stocks posted mixed gains last week as mixed jobs data triggered some selling pressure before a cooling inflation report helped stocks recover. The Standard & Poor’s 500 Index inched ahead 0.10 percent, while the Nasdaq Composite Index advanced 0.48 percent. The Dow Jones Industrial Average slipped 0.67 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, rose 0.21 percent.1,2 Round Trip for StocksA mixed jobs report on Tuesday created some concerns about the economy, leading the S&P 500 and Dow Industrials to modest declines. However, the tech-heavy Nasdaq posted a modest gain.3,4 Stocks continued their retreat on Wednesday with a handful of A I-related names leading the decline.5 Markets then staged a rebound as a fresh inflation report came in cooler than expected for November, raising investor hopes that interest rates may trend lower. The S&P 500 and Dow Industrials broke four-day losing streaks, while the Nasdaq rebounded 1.4 percent on Thursday alone.6 Megacap tech stocks rebounded on the last trading day of the week, lifting the broader market. Investors appeared to look past a disappointing report on consumer sentiment.7 Equity market breadth has improved, leadership has began to rotate and broaden out, while liquidity conditions quietly easing as Fed policy moved closer to neutral. Fixed income markets also benefited from lower volatility and improving liquidity. Off Note: Markets appear to be transitioning away from narrow leadership and toward a more liquidity-driven environment. With Fed easing underway and recession risks still muted, investors should be paying close attention to where leadership is broadening as we head into 2026. Gold ended the week higher, rallying modestly as spot prices closed near $4,390 per troy ounce, supported by expectations of U.S. interest rate cuts and safe-haven demand. Over the week, gold notched a small weekly gain of about 1% and remained close to near-record historical levels. Bitcoin trended lower last week, trading mostly in the high $80,000s after failing to break key resistance near $90,000. Ethereum also declined after failing to break about $3,000. Bitcoin's future is suspect after failing to act as a store of value or inflation hedge and the question is who is left to push Bitcoin higher after Wall Street's pump and dump? Large Bitcoin holders (whales) also sold some of their Bitcoin positions as prices neared the $120,000 range, a behavior typical of profit-taking at cycle highs. However, whale behavior has since shown signs of some accumulation during the correction, suggesting a more nuanced rotation between selling at peaks and re-buying during pullbacks. Stay tuned. . . and give us a call if you are not working with a Certified Digital Asset Advisor. Also, Partner with a Certified Financial Fiduciary at Castle Financial - Email julie@castlefinancial.com or call us at 732-888-4994 to schedule a complimentary 30 minute consultation and second opinion if you are not already a valued client of Castle Financial. |
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Source: YCharts.com, December 20, 2025. Weekly performance is measured from Monday, December 15, to Friday, December 19. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points. |
The Push & Pull of Jobs & InflationThe Bureau of Labor Statistics combined its October and November employment data into one report. However, the October report only contained partial data due to the shutdown, while the November numbers reflected full data. While November saw an unexpected increase (+64,000 versus economist expectations of +45,000), the October report showed employers cut 105,000 jobs. The unemployment rate ticked up to 4.6 percent.8 The Consumer Price Index’s (CPI) 2.7 percent year-over-year pace for November was slower than the 3.1 percent economists expected, and slower than September’s 3.0 percent pace. Market gains were tempered, however, as economists cautioned that shutdown-related gaps may have influenced some of the data.9 This Week: Key Economic Data Wednesday: Weekly Jobless Claims. Survey of Business Uncertainty. Thursday: CHRISTMAS HOLIDAY—MARKETS CLOSED * indicates publication of a report delayed by the government shutdown in October and November Source: Investors Business Daily - Econoday economic calendar; December 19, 2025. The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision. This Week: Companies Reporting EarningsNo major companies are reporting earnings this week. Source: Zacks, December 19, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice. |
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"Our destiny is in our hands [...] So let’s build the future we all know is possible. Let’s prove to our children that they really can reach for their dreams." – Michelle Obama |
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What is the IRS Alternative Media Center?The IRS Alternative Media Center offers a variety of resources and accessibility services for visually impaired taxpayers. Using this platform, they provide tax-related content in several formats, including:
The IRS also offers enhanced accessibility services. Taxpayers can complete Form 9000, Alternative Media Preference, to choose how they would prefer to receive their tax notices (ex: in Braille, large print, audio, or electronic formats). They also have an accessibility helpline that can answer questions related to accessibility services. This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional. Tip adapted from IRS.gov10 |
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Controlling Different Kinds of Light to Help You Sleep BetterControlling your environment, including your exposure to light, may help you sleep better at night. Increase your exposure to bright light during the day. Reduce blue light exposure at least an hour before bed. Tip adapted from WebMD11 |
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It has a thumb and four fingers, but isn’t alive. What could it be? Last Week's Riddle: It usually loses a head by noon, but that same head often returns by midnight. What is it? Answer: A pillow. |
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Le Cascate del Mulino, Tuscany, Italy Tuscany, Italy |
Footnotes and Sources1. WSJ.com, December 19, 2025 |
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. The Nasdaq Composite is an index of the common stocks and similar securities listed on the Nasdaq stock market and considered a broad indicator of the performance of stocks of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.
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