Stocks Remain Volatile Ahead of Fed Meeting:
Stock prices pushed higher last week despite a shaky start, notching multiple new records along the way as employment and inflation data dominated investor attention ahead of the Fed’s final meeting of the year.
The S&P 500 Index rose 0.31%, while the Nasdaq Composite Index picked up 0.91%. The Dow Jones Industrial Average gained 0.50%. The MSCI EAFE Index, which tracks developed overseas stock markets, added 0.72%.1,2
Fed in the Spotlight
Stocks fell to start the week as all three averages snapped a five-day win streak.3
Megacap tech stocks then led a recovery rally, which continued its momentum midweek as ADP’s November report showed a decline in private-sector payrolls. Investors welcomed the report, believing it might prompt an interest rate adjustment at the Fed’s upcoming meeting. All three major averages posted modest gains over both Tuesday and Wednesday.4,5
Stocks then largely went sideways, with small gains for the S&P and Nasdaq while the Dow fell slightly. Meanwhile, the Russell 2000, which measures the performance of small-cap stocks, has cracked a fresh record high6
Markets rallied on Friday after a delayed inflation report showed that prices rose at a slightly slower annualized rate in September. The S&P closed out a four-day winning streak.7
Sources: U.S. Department of the Treasury, Board of Governors of the Federal Reserve System, Charles Schwab
Economy Watch
The Fed’s preferred measure of inflation stayed cool. The Personal Consumption Expenditures (PCE) Price Index rose 2.8% in September from a year prior, cooler than the 2.9 percent expected. The annualized core inflation rate of 2.8% also came in just under expectations.8
The ADP private-sector jobs showed employers cut 32,000 jobs in November. Two things to remember: (1) this report is only based on the first two weeks of November, and (2) small business payrolls declined by 120,000, while employers with 50 or more workers added 90,000 jobs.9,10
An optimistic inflation report but a sluggish jobs update added to growing speculation that the Fed will adjust rates at its next (and last) meeting of the year.11
This Week: Key Economic Data
Source: Bloomberg Finance L.P.
This Week: Companies Reporting Earnings
Source: EarningsWhispers
Author
Gary Aiken
Chief Investment Officer
Concord Asset Management
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Footnotes and Sources
1WSJ.com, December 5, 2025
2Investing.com, December 5, 2025
3CNBC.com, December 1, 2025
4CNBC.com, December 2, 2025
5WSJ.com, December 3, 2025
6CNBC.com, December 4, 2025
7WSJ.com, December 5, 2025
8CNBC.com, December 5, 2025
9CNBC.com, December 3, 2025
10CNBC.com, December 4, 2025
11CMEgroup.com, December 5, 2025
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