Stock Market Analysis, Commentary and Picks for the week ending Dec 5, 2025

WEEKLY COMMENTARY

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The Fed's Final Act: Rally Before Reality Hits

As Wall Street inches closer to historic highs, equities seem poised for a strong finish to the year, fueled by optimism ahead of Jerome Powell’s expected interest rate cut and a typical "Santa Claus Rally." The S&P 500, Dow, Nasdaq, and smaller companies have all posted gains, supported by returning confidence among investors. Despite concerns about job data and a government shutdown, the mood remains positive, with the holiday season typically favoring bulls. Still, it is important to be careful since the market's strength might weaken after mid-January, and some analysts warn that changes in leadership at the Federal Reserve could lead to adjustments in policy. As some sectors slow and others fluctuate, investors should be cautious and selective amid signs of a possible post-holiday correction.