In December 2025, global financial markets consolidated after a year of strong returns, ending on a mixed note. US equities paused their rally, with the S&P 500 and Nasdaq finishing the month flat to slightly negative, though they secured double-digit gains for the full year. Conversely, international and emerging markets outperformed the US, benefiting from a rotation in global capital. Central bank policy drove significant divergence: the Federal Reserve cut interest rates by 25 basis points (to 3.50%–3.75%), while the Bank of Japan hiked rates to 0.75%. Despite the Fed’s cut, US Treasury yields rose, with the 10-year yield climbing to approximately 4.15% due to persistent inflation concerns. Elsewhere, the US dollar weakened further, capping a year of decline, while commodities were mixed; precious metals like gold and silver remained strong, whereas oil prices faced downward pressure before a late-month recovery.

* November 2025
*** July 2025