Weekly Market Insights: December 29th, 2025
Stocks delivered for investors last week as positive economic data and bullish holiday cheer powered the start of a “Santa Claus rally” past consumer bah humbug sentiment.
The Standard & Poor’s 500 Index rose 1.40 percent, while the Nasdaq Composite Index advanced 1.22 percent. Meanwhile, the Dow Jones Industrial Average gained 1.20 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, moved ahead 1.16 percent.1,2
AI Stock Sleigh Delivers
Stocks rallied at the start of the week, riding pre-holiday momentum as artificial intelligence (AI) related technology names continued to drive gains.3
Fresh data out Tuesday initially quashed market momentum, reflecting investor concern that the stronger-than-expected Q3 economic growth might dissuade the Fed from adjusting interest rates in 2026.
But those fears appeared to subside after a Fed official said the U.S. is “way behind the curve in terms of lowering rates” compared with other central banks around the world. Those comments, combined with continued momentum and market leadership from the AI trade, boosted sentiment and lifted the S&P 500 to a record close despite a fresh consumer confidence reading that missed expectations.4
Christmas Eve brought more of the same, kicking off what’s known as the “Santa Claus rally” period—the last five trading days of the year and the first two trading days of the new year. The S&P hit new intraday and closing highs on Wednesday’s shortened trading day—its fifth consecutive session of gains.5
While stocks largely went sideways on Friday amid thin holiday volume. The S&P 500 hit another intraday high, and all three major averages posted weekly gains. It was the S&P’s fourth weekly gain in five weeks.6
Source: YCharts.com, December 27, 2025. Weekly performance is measured from Friday, December 19, to Friday, December 26. 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.
GDP Jumps
The delayed Q3 gross domestic product report was released on Tuesday, showing that the economy grew at an annualized 4.3 percent rate. That number beat expectations by more than a full percentage point and marked the strongest economic growth in two years.7
While it didn’t garner many headlines, another metric released on the same day told a similar story. Industrial production grew 2.5 percent year over year in November—the highest annualized increase since September 2022 and nearly triple what it was at the start of 2025.8
This Week: Companies Reporting Earnings
Monday: Pending Home Sales.
Tuesday: Case-Shiller Home Price Index. Minutes of the Fed’s December FOMC meeting.
Wednesday: Weekly Jobless Claims.
Thursday: NEW YEAR’S DAY—MARKETS CLOSED.
* indicates publication of a report delayed by the government shutdown in October and November
Source: Investors Business Daily - Econoday economic calendar; December 26, 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 Earnings
No major companies are reporting earnings this week.
Source: Zacks, December 26, 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.
"Humanity will ever seek but never attain perfection. Let us at least survive and go on trying."
– Dora Russell
Should You Work with a Tax Preparer?
Here are some tips from the IRS on how to choose a tax preparer who meets your needs:
• Check the IRS Directory of Federal Tax Return Preparers
• Check the preparer’s history with the Better Business Bureau
• Ask about fees
• Ask if the preparer plans to use e-file
• Make sure the preparer is available
• Check to see if the preparer signs and includes their preparer tax identification number
• Understand the preparer’s credentials
Choosing a reputable and reliable tax preparer can help protect you and your tax return.
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.gov9
Two Top Benefits of Garlic
Not only is garlic delicious, but it also has many potential health benefits (and no, one of them isn’t warding off vampires). Here are just two of the top benefits of garlic:
Immune Support
One of the most potent benefits of garlic is that it may help your immune system. A robust immune system can help combat sickness, including the common cold.
One large, 12-week study found that a daily garlic supplement reduced the number of colds by 63% compared to a placebo. The average length of cold symptoms was also reduced by 70%, from 5 days in the placebo group to just 1.5 days in the garlic group.
Improved Cholesterol
Additionally, garlic may also help improve cholesterol levels, thereby reducing the risk of heart disease. Garlic may lower both total and LDL cholesterol (otherwise known as the "bad" cholesterol).
Tip adapted from Healthline10
When I lose my jacket, I become larger and louder – but I also weigh a little less. What am I?
Last Week's Riddle: It has a thumb and four fingers, but isn’t alive. What could it be?
Answer: A glove.
Sea Cucumbers on Sea floor
Funafuti Atoll, Tuvalu, Pacific Islands
Footnotes And Sources
1. WSJ.com, December 26, 2025
2. Investing.com, December 26, 2025
3. CNBC.com, December 22, 2025
4. CNBC.com, December 23, 2025
5. CNBC.com, December 24, 2025
6. CNBC.com, December 26, 2025
7. WSJ.com, December 23, 2025
8. KPMG.com, December 23, 2025
9. IRS.gov, April 23, 2025
10. Healthline, June 16, 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.
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Please consult your financial professional for additional information.
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