Market Insight Summary - December 14, 2025

Key Highlights

In 2025, significant trends emerged in the global economy, particularly in technology, trade policy, and labor markets:

• AI Investment Surge: Tech giants ramped up capital expenditures to build AI infrastructure, with executives expressing extreme commitment to the AI race.
• Trade Policy Changes: U.S. tariffs reached historic highs, with a notable 145% tariff imposed on China.
• Political Landscape: President Trump signed a record number of executive orders, and the Democratic socialist candidate Zohran Mamdani gained significant support among younger voters in NYC.
• Labor Market Trends: Youth unemployment rose, with approximately 1.5 million individuals aged 20-24 unemployed.
• Wealth Disparity: The U.S. equity market contributed to a $9 trillion increase in household wealth, highlighting a K-shaped economic recovery.
• Monetary Policy: The Federal Reserve's actions, including a 25 basis point cut, raised questions about liquidity management amidst a record fiscal deficit.
• Global Rate Cuts: A significant number of global central banks cut rates, with expectations for a slowdown in 2026.
• Equity Performance: U.S. equities accounted for 72% of global equity fund inflows, indicating strong investor confidence.