Weekly Market Update

Week in Review

The stock market closed out 2025 with sizable gains, despite a rollercoaster ride throughout the year. The S&P 500 finished the year up 16%, while the Nasdaq Composite led gains with a 20% rise. Tech and Consumer Discretionary stocks fueled the gains this year over AI optimism.

Key Developments:

1. US Stocks: The major indexes notched record highs in 2025, hurtling past tariffs, a government shutdown, and fears of an AI bubble.
2. Fed Interest Rates: The Federal Reserve's interest rate path is in focus into next year, with the divisions that have gripped the central bank in 2025 likely to continue.
3. AI Boom: The outlook for 2026 calls for more optimism, but plenty of risks remain, including the AI boom potentially faltering and the US economy surprising.

Market Outlook:

Every Wall Street forecaster tracked by Bloomberg is predicting that stocks will rally for a fourth consecutive year in 2026. However, traders are cautious about potential risks, including the Federal Reserve's interest rate path and the fate of President Trump's most sweeping tariffs.

Top Stocks to Watch:

1. Nvidia (NVDA): The chip giant rose 39% in 2025 and is expected to continue leading the market higher.
2. Alphabet (GOOG) (GOOGL): The tech giant outperformed the Magnificent 7 group, rising 65% in 2025.
3. Gold (GC=F) and Silver (SI=F): Precious metals are building on their best annual performances since 1979.