The Weekly Update
Week of December 8th, 2025
By Christopher T. Much, CFP®, AIF®
Stock prices pushed higher last week, notching multiple records along the way as employment and inflation data took center stage in anticipation of the Fed’s upcoming meeting.
The Standard & Poor’s 500 Index rose 0.31 percent, while the Nasdaq Composite Index picked up 0.91 percent. The Dow Jones Industrial Average gained 0.50 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, added 0.72 percent.
Fed in Spotlight
Stocks fell to start the week as all three averages snapped a five-day win streak.
Megacap tech stocks then led a recovery rally, which continued its momentum midweek as ADP’s November report showed a decline in private-sector payrolls. Investors welcomed the report, believing it might prompt an interest rate adjustment at the Fed’s upcoming meeting. All three major averages posted modest gains over both Tuesday and Wednesday.
Stocks then largely went sideways, with small gains for the S&P and Nasdaq while the Dow fell slightly. Meanwhile, the Russell 2000, which measures the performance of small-cap stocks, has cracked a fresh record high.
Markets rallied on Friday after a delayed inflation report showed that prices rose at a slightly slower annualized rate in September. The S&P closed out a four-day winning streak.
Economy Watch
The Fed’s preferred measure of inflation stayed cool. The Personal Consumption Expenditures (PCE) Price Index rose 2.8 percent in September from a year prior, cooler than the 2.9 percent expected. The annualized core inflation rate of 2.8 percent also came in just below expectations.
The ADP private-sector jobs showed employers cut 32,000 jobs in November. Two things to remember: (1) this report is only based on the first two weeks of November, and (2) small business payrolls declined by 120,000, while employers with 50 or more workers added 90,000 jobs.
An optimistic inflation report but a sluggish jobs update added to growing speculation that the Fed will adjust rates at its next (and last) meeting of the year.
This Week: Key Economic Data
Tuesday: NFIB Small Business Optimism Index. Job Openings (Oct.)* Federal Open Market Committee meeting, Day 1.
Wednesday: Employment Cost Index (Q3).* Federal Budget. Federal Open Market Committee meeting, Day 2. Fed Interest Rate Decision. Fed Chair Press Conference. Federal Open Market Committee meeting, Day 2. Fed Interest Rate Decision. Fed Chair Press Conference.
Thursday: Weekly Jobless Claims.
Source: Investor’s Business Daily – Econoday economic calendar; December 5, 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 be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
This Week: Companies Reporting Earnings
Tuesday: AutoZone, Inc. (AZO)
Wednesday: Oracle Corporation (ORCL), Adobe Inc. (ADBE), Synopsis, Inc. (SNPS)
Thursday: Broadcom Inc. (AVGO), Costco Wholesale Corporation (COST)
Source: Zacks, December 5, 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 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. Companies may reschedule when they report earnings without notice.
