Global Markets Weekly Update
Date: December 19, 2025
U.S. Market Overview
U.S. stock indexes ended the week mixed, with the Russell 2000 Index declining by 0.86% and the Dow Jones Industrial Average down 0.67%. The S&P MidCap 400 and S&P 500 remained relatively unchanged, while the Nasdaq Composite gained 0.48%. The week began with a decline due to ongoing concerns about tech stock valuations and mixed economic data, but reversed towards the end of the week following a positive inflation report and strong earnings from Micron Technology.
Jobs Data
The Bureau of Labor Statistics reported that U.S. employers added 64,000 jobs in November, surpassing expectations. However, the unemployment rate rose to 4.6%, the highest in over four years.
Inflation Insights
Core inflation dropped to its slowest pace since early 2021, with a year-over-year increase of 2.7% in November, below expectations. This positive news was well-received by investors.
Business Activity
December's business activity growth slowed to a six-month low, with the S&P Global Composite PMI declining to 53.0, indicating a moderation in economic growth.
European Market Overview
The pan-European STOXX Europe 600 Index rose by 1.60%, supported by steady economic growth and looser monetary policy. The ECB kept rates unchanged, while the Bank of England cut rates to 3.75% amid slowing inflation and a weakening labor market.
Japan's Economic Update
Japan's stock markets fell, with the Nikkei 225 Index down 2.61%. The Bank of Japan raised its benchmark interest rate to 0.75%, the highest since 1995, amid rising inflation and strong export growth.
China's Economic Indicators
Mainland Chinese stock markets showed mixed results, with retail sales growth slowing to 1.3% in November, the weakest since the pandemic. The government plans to maintain a manufacturing-led growth strategy while stimulating domestic consumption.
Other Key Markets
In Chile, the central bank cut rates to 4.50% following a faster-than-expected drop in inflation. In Mexico, the central bank also reduced rates to 7.00% due to weak economic activity.
Market Performance Summary
| Index | Friday's Close | Week's Change | % Change YTD |
|---|---|---|---|
| DJIA | 48,134.89 | -323.16 | 13.14% |
| S&P 500 | 6,834.50 | 7.09 | 16.20% |
| Nasdaq Composite | 23,307.62 | 112.45 | 20.70% |
| S&P MidCap 400 | 3,350.26 | -0.69 | 7.35% |
| Russell 2000 | 2,529.42 | -22.03 | 13.42% |