DFG Navigator Archives | December 2025
Your Capital Markets Snapshot: Markets Gain Momentum Heading Into December
Markets rebounded after early November volatility, with major U.S. indexes posting strong weekly gains. International equities also continued their impressive 2025 performance, supported by a weaker dollar and improving global growth outlook. US economic resilience continues, as recession expectations continue to fade and consumer spending remains resilient. Corporate profits are strong, with S&P 500 earnings on track for an 11% year-over-year increase and margins near record highs. AI-driven innovation continues to underpin tech sector strength, though concentration risks persist. The Fed’s resumed easing cycle has eased financial conditions, which helped mortgage rates decline. Inflation has moderated slightly, falling from 3% in 2024 to 2.7% in 2025. Treasury yields hovered near 4%, offering historically attractive income opportunities for bond investors. Seasonal trends of the S&P 500 suggest potential for a strong year-end finish, as December has historically delivered positive returns about 70% of the time of the last 30 years. Read more … Your Capital Markets Snapshot: Markets Gain Momentum Heading Into December