The Weekly Update
Week of December 15th, 2025
By Christopher T. Much, CFP®, AIF®
Stocks ended last week mixed. A widely anticipated Federal Reserve decision on interest rates and a rotation into non-tech areas helped push the Dow Industrials higher, while the broader market and technology stocks lagged.
The Standard & Poor’s 500 Index declined 0.63 percent, while the Nasdaq Composite Index fell 1.62 percent. Meanwhile, the Dow Jones Industrial Average advanced 1.05 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, rose 0.89 percent.
Market Rotation After Fed Decision
Stocks stayed in a fairly tight trading range over the first half of the week. Tech remained a strong spot on Monday despite slight to modest declines in all three major averages.
By Tuesday’s close, all three major averages were slightly to modestly lower week-to-date as the Fed’s last interest-rate-setting meeting of the year approached.
Then, on Wednesday morning, stocks rose ahead of the Fed’s announcement that it was lowering rates by a quarter percentage point—a widely expected move. By the close, all three major averages ended in the green.
A market rotation theme dominated the rest of the week, as investors shifted into cyclical areas of the economy that are likely to benefit from an economic rebound. The Nasdaq ended Thursday’s session lower, while the S&P and Dow Industrials hit fresh record closes. The Russell 2000 Index of small-cap stocks also notched new closing highs.
The rotation into value stocks continued Friday, with some AI names coming under pressure. The financial, healthcare, and industrial sectors were among the groups that seemed to benefit from the rotation.
No Surprise, Just Tea Leaves
Last week’s rate decision from the Federal Reserve was no big surprise. Speculators had already priced in this outcome weeks ago.
Now for reading the tea leaves: First, Fed Chair Powell stated in his press conference on Wednesday that they have ruled out a rate hike for the foreseeable future but also noted that it would be a higher bar for further rate reductions. Another point was the degree of dissent: the vote was 9-3.
Then on Friday, voting members who dissented expressed views on inflation and jobs, and which risk was the more important one to address through monetary policy.
This Week: Key Economic Data
Monday: Homebuilder Confidence Index.
Tuesday: Employment Reports, Oct.* (limited) + Nov. (full). Retail Sales, Oct.* Business Inventories, Sept.* Purchasing Managers Index (PMI)—Services. Purchasing Managers Index —Manufacturing.
Thursday: Consumer Price Index (CPI). Weekly Jobless Claims. Philadelphia Fed Manufacturing Survey.
Friday: Existing Home Sales. Consumer Sentiment.
* indicates publication of a report delayed by the government shutdown
Source: Investor’s Business Daily – Econoday economic calendar; December 12, 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
Wednesday: Micron Technology, Inc. (MU)
Thursday: NIKE, Inc. (NKE), Cintas Corporation (CTAS), FedEx Corporation (FDX)
Friday: Paychex, Inc. (PAYX)
Source: Zacks, December 12, 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.
