General Market News

Major US stock indices retreated Monday as tech sector weakness and a plunge in precious metals drove year-end selling across markets. The Nasdaq formed a new lower top at 23665.15, threatening the traditional Santa Claus rally, while the Dow and S&P 500 remain on track for their eighth consecutive monthly gain despite the pullback. Trading volumes are expected to remain light through Wednesday's year-end close as investors square positions.

• Nasdaq fell 0.50% to 23474.35, with potential support at the 50-day moving average (23226.59) and short-term 50% level (23178.58)
• S&P 500 declined 0.35% to 6905.74, maintaining 'buy the dip' mode with the 50-day MA at 6795.70 as key support
• Dow Jones dropped 0.51% to 48461.93, forming a potential double-top pattern at 48886.86 and 48782.00

US stock futures steadied on December 30, 2025, as hopes for a March Fed rate cut offset hawkish Bank of Japan signals that pushed 10-year Japanese Government Bond yields toward 2.1%, creating tension between market optimism and concerns about potential yen carry trade unwinding.

• 10-year JGB yields climbed to 2.07%, nearing last week's 2.1% high, while markets priced in a 52.3% chance of a March Fed rate cut
• Dow Jones, Nasdaq 100, and S&P 500 E-minis remained above key 50-day and 200-day EMAs despite volatility, with technical targets at 49,500, 26,399, and 7,000 respectively
• Yen carry trade risks persist as BoJ signals neutral rate between 1-2.5%, potentially triggering asset sell-offs if US-Japan rate differential narrows significantly

US stocks ended lower Monday as technology shares retreated from last week's record highs, with the S&P 500 falling 0.35%, Nasdaq down 0.5%, and Dow dropping 0.51%. The pullback comes in the final trading week of 2024, though all three major indexes remain on track for double-digit annual gains amid optimism about AI developments and Fed rate cuts.

• Tech giants led declines with Nvidia down 1.2% and Tesla falling 3.3% after hitting record highs, while precious metal miners slumped as gold and silver prices fell from recent peaks
• Despite Monday's losses, the S&P 500 has gained 17% year-to-date and is heading for its third consecutive annual gain, with the index sitting less than 1% below the 7,000-point milestone
• DigitalBridge surged 9.6% on news of SoftBank's $4 billion acquisition, providing a bright spot as declining stocks outnumbered advancers by 2.38-to-1 on the Nasdaq

RiverFront Investment Group's 2026 outlook suggests the US stock market is experiencing an AI-driven 'boom' rather than a 'bubble', with further upside expected despite elevated valuations. The firm maintains a bullish stance favoring US stocks over bonds and international assets, while monitoring risks from credit, inflation, and Fed policy in the second year of the presidential cycle.

• Current market metrics including valuation, leverage, and sentiment don't yet reflect bubble-like euphoria, with the firm comparing today's market more to the 1960s growth boom than the 1990s tech bubble
• Base case forecasts continued AI spending momentum preventing recession, though second-year presidential cycles historically bring increased volatility
• Google searches for 'stock market bubble' hit near-record levels in Q4, which RiverFront interprets as cautious sentiment that may indicate more room for market growth

VettaFi's Head of Research Todd Rosenbluth appeared on the 'ETF of the Week' podcast with Chuck Jaffe to discuss major ETF-related takeaways for 2025. The discussion focused on key trends and developments expected to shape the ETF industry in the coming year.

• The article appears to be incomplete or truncated, lacking specific details about the actual 2025 ETF takeaways discussed
• The content references a podcast discussion but does not provide the substantive insights or predictions that were shared

Cathie Wood's ARK Invest funds dramatically outperformed the S&P 500 in 2025, with her top two ETFs - ARK Space & Defense Innovation (ARKX) and ARK Autonomous Tech & Robotics (ARKQ) - both gaining 50% this year. Defense contractor Kratos Defense (KTOS) is the common link between these top performers, holding significant positions in both funds and surging 195% year-to-date.

• Kratos Defense represents 7.79% of ARKX and 7.27% of ARKQ, with the stock up 195% in 2025
• All six of ARK's actively managed ETFs beat the S&P 500's 18% gain, with returns ranging from 25% to 50%
• Other key holdings include Tesla (top position in 3 funds), Rocket Lab (up 181%), and cryptocurrency plays Coinbase and Robinhood

Bank of America CEO Brian Moynihan predicts tariff tensions will ease in 2026, with the Trump administration moving toward 'de-escalation, not escalation' and an average tariff rate of 15% for most countries. He sees this as a manageable shift from current 10% rates, though China and Mexico face different treatment due to national security and strategic concerns.

• Nearly half of product leaders at goods-producing companies ($100M-$1B revenue) report tariffs are already impacting their business finances
• Small businesses face compounding challenges beyond tariffs, including labor shortages and uncertainty around immigration policies
• Moynihan expects higher rates for countries that won't agree to U.S. purchases or lower non-tariff barriers, with China facing special scrutiny over rare earth minerals and AI

The US IPO market surged in 2025 with 336 offerings through mid-December, marking a 55% increase from 2024's 216 offerings. Technology companies led the resurgence, including major debuts from AI cloud firm CoreWeave, stablecoin issuer Circle, and design software company Figma, with strong prospects for 2026 including potential blockbuster IPOs from SpaceX and Stripe.

• CoreWeave's IPO priced at $40 per share in March, while Figma went public at $33 per share in July following its failed $20 billion Adobe acquisition
• SpaceX is targeting a mid-to-late 2026 IPO that could raise over $30 billion at a $1.5 trillion valuation, with secondary market trades currently valuing it at $800 billion
• Buy-now-pay-later firm Klarna raised funds at a $14.6 billion valuation in its September IPO, recovering from previous market volatility delays

US stocks opened lower Monday with the Nasdaq falling 0.7% and S&P 500 declining 0.4% as technology stocks retreated following last week's rally to record highs. The pullback was led by AI-related names after strong gains in the prior week, though markets remain near historic levels with the S&P 500 up 18% year-to-date.

• AI trade leaders including Nvidia, Micron, and Oracle reversed after posting 3-7% gains last week, with investors locking in profits near record levels
• Wall Street strategists project S&P 500 to reach 7,555 by end-2026, implying 9% upside from current levels driven by earnings growth and AI productivity gains
• Fed minutes due Wednesday expected to provide guidance on 2026 rate path as markets enter historically favorable 'Santa Claus rally' period

Goldman Sachs forecasts the U.S. economy will accelerate to 2.6% GDP growth in 2026, above consensus expectations of 2%, driven by reduced tariff drag, tax cuts from the One Big Beautiful Bill Act, and more favorable financial conditions. Despite stronger economic growth, the labor market is expected to remain stagnant with unemployment staying around 4.5%, while inflation should moderate to just above 2% by year-end.

• The 2025 growth shortfall of 0.4pp was attributed to an 11pp rise in effective tariff rates, much higher than the 4pp originally anticipated
• Consumers will receive approximately $100 billion in tax benefits in early 2026, equivalent to 0.4% of annual disposable income
• Core PCE inflation currently at 2.8% is expected to decline to just above 2% by end-2026 as tariff impacts fade

Quantum computing stocks are experiencing profit-taking and heightened volatility as 2025 ends, with D-Wave up 201% year-to-date despite recent pullbacks. The sector saw mixed performance on Dec. 29, with institutional interest growing but concerns about valuations mounting. High average true range (ATR) ratings of 7.89%-9.99% indicate these stocks remain extremely volatile swing-trading vehicles rather than buy-and-hold investments.

• D-Wave led quantum stocks with 201% gains in 2025, followed by IonQ (76%) and Rigetti (37%), while Nvidia (42%) highlighted traditional tech's competitive threat
• Wall Street banks including JPMorgan, Jefferies, and Bank of America initiated coverage, signaling institutional recognition of the sector's potential
• ATR ratings between 7.89%-9.99% exceed IBD's recommended 8% threshold, confirming extreme volatility that demands careful position monitoring

US equity futures edge lower as investors wrap up a strong 2025 with the S&P 500 up nearly 18%, while markets turn attention to Tuesday's Fed minutes for insight on 2026 rate-cut timing. Trading volumes are expected to remain light during the traditional 'Santa Claus rally' period, with all major indices holding above their 52-week moving averages.

• S&P 500 gained nearly 18% in 2025, Nasdaq rose 22%, and Dow climbed 14.5% - its best year since 2021, driven by AI-led tech strength
• Fed minutes on Tuesday will be scrutinized for policymaker divisions on December's rate cut, with markets pricing in two 25bp cuts for 2026
• Technical indicators remain bullish with indices above rising 52-week SMAs, though light volume could amplify volatility in year-end trading

The Dow Jones Index surged 15% in 2024 to reach an all-time high of $48,862, driven by strong corporate earnings and the AI boom. Key catalysts for 2026 include Federal Reserve policy decisions under a potential new chairman, continued AI sector performance, and corporate earnings reports from constituent companies.

• S&P 500 companies achieved double-digit earnings growth in all quarters of 2024, with Nvidia's revenue reaching $57 billion in Q3
• Fed expected to deliver at least three interest rate cuts in 2026, with Trump planning to nominate a dovish chairman to replace Jerome Powell
• AI boom sustainability concerns emerged as Nvidia and other tech stocks pulled back, making upcoming earnings guidance critical for market direction

More than half of multinational tech companies in Israel reported increased employee relocation requests following the Gaza war, raising concerns about potential brain drain from Israel's tech sector which represents 20% of GDP and over 50% of exports. Despite this trend, most companies maintained or expanded operations, though some are exploring relocating investments elsewhere.

• 53% of multinationals saw increased Israeli employee relocation requests, with some firms finding alternative supply chains outside Israel that may permanently replace local operations
• Tech sector showed resilience with 57% maintaining stable business and 21% expanding Israeli operations, while 22% reported damage during the war period
• Major tech giants including Microsoft, Intel, Nvidia, Amazon, Meta and Apple operate in Israel, employing 15% of the country's workforce

Markets prepare for a shortened holiday week as traders eye Fed meeting minutes, jobless claims data, and pending home sales, with New Year's Day closing U.S. markets Thursday. Major stock indexes posted double-digit gains in 2025, setting up investor expectations for continued momentum into 2026. The week offers limited trading with no significant corporate earnings scheduled.

• Fed's December meeting minutes on Tuesday will reveal member views on the economy's trajectory as the central bank weighs its next interest rate decision amid labor market concerns
• Twenty-two states will raise their minimum wage starting January 1st, with economic indicators showing pending home sales and housing price data due Monday and Tuesday respectively
• Bond markets close early at 2 p.m. ET on New Year's Eve Wednesday, while stock markets operate on normal schedule before the year's first trading session on Friday

Investors are identifying the over-50s demographic, dubbed 'Silver Spenders' or the 'Grey Pound,' as a powerful investment opportunity driver in the UK. This wealthy cohort is increasingly seeking premium wealth management, insurance services, and luxury goods, with their spending expected to represent 60% of all UK consumer spending by 2030. Market professionals highlight opportunities across healthcare, high-end retail, financial services, and leisure sectors.

• Saga plc identified as 'materially undervalued' with potential for 400% gains, representing 10% of Kernow Asset Management's portfolio
• Insurance group Hiscox and wealth managers like Evelyn Partners positioned to benefit as over-50s seek premium financial planning and tax optimization services
• Healthcare sector and pet retailers like Pets At Home expected winners as aging population drives demand for medical services and shifts spending from children to pets

The US economy grew at 3.4% in Q3, surpassing the 3.2% expectation, sparking debate over whether the Fed will cut rates at its January meeting. Despite stronger GDP growth, rising unemployment to 4.6% in November - a four-year high - may still justify another rate cut to support the weakening labor market.

• US stocks could rally regardless of Fed's January decision due to AI tailwinds and resilient corporate earnings
• Economists are divided: some expect rapid rate cuts to 'neutral' in 2026 while others see Fed remaining in 'wait-and-see mode'
• Mixed economic signals show growth outperforming while employment deteriorates, creating a complex policy environment for the Fed

3EDGE's leadership team, including Chief Investment Strategist Fritz Folts, CEO/CIO Steve Cucchiaro, and Deputy CIO Eric Biegeleisen, released a special video discussing key investment themes from 2025 and their outlook for 2026. The presentation covers how their model research guided investment decisions throughout 2025 and what market conditions investors might expect in the coming year.

• The firm's proprietary model research was highlighted as a key tool that helped navigate the 2025 investment landscape
• Multiple senior executives participating suggests significant strategic insights about major market shifts or opportunities ahead
• The December 2025 timing indicates this is a year-end recap combined with forward guidance for institutional and retail investors

VettaFi's latest advisor survey reveals continued optimism about markets heading into 2026, with 75% of advisors expecting lower interest rates by year-end despite the three-year rally. Advisors favor large cap U.S. equities (30%) and are showing renewed interest in international markets, while crypto adoption remains limited with 53% of clients holding zero exposure.

• The 'belly of the curve' (3-7 year duration) emerged as a potential sweet spot if short-term rates fall while long-term rates stay elevated due to inflation concerns
• International equities tied with small caps at 21% for planned additions, boosted by China's 30%+ performance in 2025
• Crypto interest is purely speculative - 50% cite growth opportunities and 22% FOMO, but 0% believe in the underlying blockchain technology

Federal Reserve Chair Jerome Powell's September warning about high stock valuations has become more serious as consumer sentiment crashed to 50.4 in November—the second-lowest reading in history—while aggressive tariff policies threaten economic stability. With the S&P 500's forward P/E at 21 versus historical average of 16, the combination of rich valuations, trade wars, and collapsing consumer confidence creates significant downside risk despite Wall Street's optimistic 15-20% growth forecasts for 2026.

• Consumer sentiment plummeted to 50.4, with 71% of households expecting unemployment to rise in 2026 as tariff costs hit businesses and consumers
• Goldman Sachs data shows U.S. businesses and households pay 82% of tariff duties, reigniting inflation concerns and squeezing corporate margins
• When the Shiller CAPE ratio exceeds 39 (as it has recently), the S&P 500 historically declines 4% in the following year and up to 30% within three years