Global Markets Weekly Update - 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 course towards the end of the week following a positive inflation report and strong earnings from Micron Technology.
Key Economic Indicators
Jobs Data
The Bureau of Labor Statistics reported that U.S. employers added 64,000 jobs in November, surpassing estimates. However, the unemployment rate rose to 4.6%, the highest in over four years.
Inflation
Core inflation dropped to its slowest pace since early 2021, with the consumer price index rising only 2.7% year-over-year in November, below expectations.
Business Activity
Business activity growth slowed to a six-month low, with the Flash U.S. Composite PMI declining to 53.0 in December.
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 Market Overview
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 economic growth concerns.
China Market Overview
Mainland Chinese stock markets showed mixed results, with the CSI 300 Index declining by 0.28%. Economic indicators revealed weak growth, with retail sales rising only 1.3% in November, the slowest since the pandemic.
Other Key Markets
Chile
Chile's central bank cut rates to 4.50% following a faster-than-expected drop in inflation.
Mexico
Mexico's central bank also reduced rates to 7.00% due to weak economic activity and ongoing uncertainty.
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% |
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