Market Data as of Week Ending: 12/19/2025 unless noted otherwise
Equities were mixed last week as investors digested a large volume of economic data and continued to trade around uncertainty tied to AI-related valuations. Large and mid-cap stocks finished the week roughly flat, while small-caps declined. Growth stocks extended their year-to-date outperformance versus value. Sector performance was also mixed, with 5 of 11 S&P 500 sectors finishing higher, led by consumer discretionary. Energy was the weakest sector, pressured by lower oil prices. Developed international equities edged higher as improving economic data in Europe was partially offset by rate hikes from the Bank of Japan. Emerging market stocks declined amid ongoing weakness in Chinese economic data.
Fixed income markets traded higher as Treasury yields moved lower in response to incoming economic releases. The 2-Year Treasury yield fell to 3.48% and the 10-Year declined to 4.16%, steepening the 2-10 year curve to 0.68%. Longer-duration government and investment-grade bonds outperformed, while high-yield bonds lagged. Government bonds outperformed corporates and high yield as credit spreads edged slightly wider. Investment-grade corporate yields and highyield yields finished the week at 4.84% and 7.11%, respectively.
Mixed economic signals emerged last week amid a wave of delayed data releases following the government shutdown. The BLS reported that 64K jobs were added in November, following an October estimate showing a loss of 105K jobs that was previously unavailable. Job gains remained concentrated in healthcare, which added 46K positions, with construction contributing an additional 28K. The unemployment rate rose to 4.6%, above expectations, while August and September payrolls were revised lower. November core CPI declined more than expected to 2.6% year-over-year, raising some questions around data reliability. Shelter inflation slowed to 3.0% year-over-year, the lowest reading since 2021. October retail sales were unchanged month-over-month at $732.6B, while the retail sales control group increased 0.8%, pointing to firmer underlying consumer demand.