01/06/2026
December wrapped up a year full of surprises — easing inflation, steady Fed cuts, and a resilient (but shifting) stock market. As we head into 2026, the market narrative is evolving.
• A broader set of stocks took the lead in December, expanding beyond the mega‑cap and AI giants that dominated much of 2025.
• Major indices split: the S&P 500 was flat, the Nasdaq saw some profit‑taking, and the Dow gained as investors rotated toward defensive names.
• The Fed delivered another 25 bps cut, signaling a slow and steady path forward — with just two more cuts projected through 2027.
• Inflation cooled further, supporting the “soft‑landing” outlook as shelter and services continued to ease.
• The labor market softened with slower hiring, but layoffs remained subdued.
• Services stayed strong while manufacturing remained in contraction territory.
Looking ahead, most strategists still see a soft landing on the horizon. For long‑term investors, the fundamentals stay the same: stay invested, stay balanced, and treat volatility as an opportunity.
Here’s to a steady and strategic start to 2026. 📈✨
