Market Insights Summary - Edward Jones
Daily Market Snapshot (December 26, 2025)
U.S. equity markets showed little movement today, with the S&P 500 finishing just below its record high. The Nasdaq index remained broadly unchanged, while the Russell 2000 small-cap index dipped slightly by 0.5%. This stability follows a positive trend in U.S. equities, as investors anticipate a potential "Santa Claus" rally for the remainder of the year. International markets were similarly quiet due to holiday closures in Australia, Hong Kong, and many European exchanges.
Shorter-dated U.S. government bonds saw a rally, with the yield on the 2-year Treasury note decreasing by 2 basis points, while the 10-year note remained flat at 4.13%. Gold and silver prices continued to rise, driven by geopolitical tensions and a weaker dollar, with gold on track for its best annual performance since 1979.
Oil Prices and Geopolitical Reactions
Recent U.S. military actions in Nigeria against Islamic State targets have influenced oil prices, which were initially set for a significant weekly gain. However, optimism regarding a potential peace agreement in Ukraine and easing Russian oil sanctions led to a decline in prices, settling at $57 per barrel. Current oil prices are providing some relief to U.S. consumers facing inflation rates above the Federal Reserve's target for nearly five years. The VIX index, indicating expected market volatility, is trading near its lowest point of 2025.
Investment Performance in 2025
The year 2025 has been favorable for diversified investors, with both global equity and bond markets yielding positive returns. International stocks, particularly the MSCI AC World ex US Index, have surged over 30%, marking the strongest annual gain since 2009. Domestically, the S&P 500 has achieved 39 new all-time highs and is on track for a third consecutive year of gains exceeding 15%. Credit-sensitive assets, including U.S. high-yield bonds and emerging-market debt, have also performed well, each up more than 8%. U.S. investment-grade bonds are expected to deliver gains above 7%.
The strong performance across various regions and asset classes highlights the importance of maintaining a well-diversified portfolio. Looking ahead, expectations for 2026 remain optimistic for equities.