Financial insights for the week ending December 5, 2025
For the week ending December 5, 2025, the S&P 500 gained 0.7%, the NASDAQ jumped 1.7%, the Dow Jones Industrial Average rose 0.8%, and the Russell 2000 increased 1.6%.
Markets worked through a steady flow of economic updates this week, but the strongest theme remained the ongoing momentum in artificial intelligence. Several large technology and cloud companies raised their spending plans for 2026, noting continued demand for advanced computing and higher-capacity data centers. Investors took this as a sign that the AI runway still has room to build speed, especially as enterprises broaden their use of machine learning tools and upgrade older infrastructure. Comments from a few major chipmakers also suggested that supply constraints are easing and that inventories are now better aligned with demand. This helped calm concerns that the sector might be headed for another period of volatility. With economic data coming in mostly in line with expectations, markets were able to lean on the strength of the technology sector and maintain a relatively steady tone.
Attention now shifts to the week ahead, which brings several highly anticipated economic releases. The latest reading of the core PCE index, the Fed’s preferred measure of inflation, will be a focal point. Investors will be looking for assurance that price pressures continue to drift lower, which would support the view that the Fed can begin easing policy sometime in 2026. Any sign that inflation is cooling more quickly than expected could provide the market with additional breathing room, while a firmer reading might introduce a bit more caution into the final stretch of the year. The Fed’s meeting later in the week will carry just as much weight. Investors will be listening for any updates on how officials are thinking about the economy, the labor market, and the timing of potential rate adjustments. Even subtle shifts in tone can guide expectations for the first few months of the new year. Beyond the policy backdrop, markets will also continue watching developments in the technology sector, particularly around AI infrastructure commitments heading into 2026. Companies that rely on high-performance computing continue to signal that this investment cycle is still in its early stages. That could remain a supportive force for the market if broader economic conditions stay stable. Similarly, with the holiday season underway, consumer-spending reports will start to carry more influence. Retail activity in December often shapes expectations for corporate earnings in the first quarter, especially for companies tied to discretionary spending. All of this creates an environment where even modest surprises can have an exaggerated impact, simply because trading volumes tend to thin out as the year winds down.
As we approach year-end, this is also a great moment to revisit recurring expenses, especially the small subscriptions that tend to slip through the cracks. Streaming services, mobile apps, cloud storage, overlapping software plans, and trial offers that quietly renewed can add up faster than most people realize. A quick review of your recent bank and credit card statements can help you identify anything you are not using or no longer need. Cleaning up a few of these charges can free up meaningful cash flow each month and bring a little extra clarity to your financial picture heading into 2026.
Enjoy your day! Come back next Saturday for our latest commentary. We are here to answer any of your financial questions.