From Our Point of View

Global markets pulled back this week as renewed AI volatility, softer consumer sentiment, and mixed economic data weighed on investor confidence. Despite strong results from NVIDIA, big-tech weakness dominated trading while bonds benefited from a risk-off shift. With the Federal Reserve hinting that December rate cuts are still on the table, markets are preparing for a data-heavy week that may shape year-end positioning.

Stocks pulled back after a strong October as investors grew cautious on AI valuations, mixed labor data, and fading consumer confidence. Here’s how the markets performed and what to watch as inflation data and key economic reports arrive next week.

Markets opened the final quarter of 2025 on solid footing as healthcare and technology shares lifted U.S. equities despite a government shutdown. Falling oil prices and soft labor data boosted expectations for Fed rate cuts and extended gold’s rally.

Equities eased off all-time highs as inflation cooled and oil prices lifted energy stocks. With bonds adjusting to Fed policy shifts and housing showing resilience, investors now look to jobs data in the week ahead.

The Federal Reserve resumed its rate-cutting cycle with a 25 basis point cut, igniting fresh record highs for the S&P 500, Nasdaq, Dow, and Russell 2000. While Treasuries slipped and commodities traded mixed, gold and the U.S. dollar advanced. Global markets saw a split week as European and Asian equities diverged on central bank moves and trade headlines.

The S&P 500 gained 1.6%, the Nasdaq jumped 2.5%, and international markets surged as investors priced in a Fed rate cut. Bond yields dropped on record auction demand, while gold topped $3,600 amid geopolitical tensions.