Market Recap of the Week of Dec 21, 2025 - Dec 28, 2025

Overall Market Trends:

The market faced mixed results last week, with all four major indices finishing the week relatively flat. The New York Stock Exchange Composite (NYSE) rose 66 points (+0.31%), the S&P 500 climbed just 5 points (+0.08%), the NASDAQ Composite slipped 106 points (-0.46%), and the Dow Jones Industrial Average posted a weekly gain of 159 points (+0.34%). These results were largely impacted by the resolution to the government shutdown as well as the swings in tech-industry markets.

Stocks started the week off on a good note, rising significantly throughout Monday’s trading session. A resurgence of the artificial intelligence bull market fueled these gains as investors began to re-enter the market following a possible end to the everlasting government shutdown. A cloture was invoked on Monday after meeting the minimum of 60 yes votes, following the support of eight Democratic senators for the deal, who broke with party leadership. Along with reversing a few of the recent mass federal layoffs and including future protections for government workers, the deal would see the government reopen in January. During the government shutdown, consumer sentiment reached its lowest point in three years, and federal agencies have begun stating that they will no longer be releasing many essential economic reports, including the producer and consumer price indexes (CPI, PPI). This deal would help ease investor concerns, which prompted the large gains on Monday.

The market was mixed on Tuesday, with the Dow Jones Industrial Average climbing and the tech-heavy Nasdaq Composite falling. Investors began buying blue-chip stocks, especially health giants such as Amgen (NASDAQ: AMGN), Johnson & Johnson (NYSE: JNJ), and Merck (NYSE: MRK), which pushed the Dow higher. On the other hand, investors grew weary of the A.I. sector after CoreWeave (NASDAQ: CRWV) fell over 16% as a result of poor guidance, pulling down the Nasdaq. Nvidia (NASDAQ: NVDA) also fell 3% after Softbank exited the company, selling its entire $5.83 billion (31.2 million share) stake. This move was more of a strategic move to enter other companies in the sector, rather than Softbank losing faith in Nvidia.

The market saw similar results on Wednesday as investors continue to eye what looks to be an end to the government shutdown. The Senate passed the government funding bill, which now awaits being passed by the House. The bill could see the end of the government shutdown as early as the end of this week. Investors are eager for the shutdown to be resolved so they can observe economic reports throughout this weak labour market. The financial sector soared as a result, with prominent names such as JPMorgan (NYSE: JPM), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), American Express (NYSE: AXP), Bank of America (NYSE: BAC), and Wells Fargo (NYSE: WFC) all experiencing gains, ultimately supporting the Dow’s outperformance compared to the overall market.

Stocks drew back on Thursday, with technology companies, especially the artificial intelligence sector, seeing a major sell-off from investors amid concerns regarding their extremely high valuations. Companies like Broadcom (NASDAQ: AVGO), Alphabet (NASDAQ: GOOG), and Nvidia were major contributors to the pullback. Disney (NYSE: DIS) also released poor earnings, resulting in the company falling roughly 8%. A sudden adjustment in race cut expectations also weighed down on the market, with the odds of a rate cut at the next meeting falling from 62.9% to 51% overnight. Additionally, Karoline Leavitt, White House press secretary, remarked that the reports missed during the government shutdown may never end up being released. She also stated that fourth-quarter economic growth could decline by potentially 2 percentage points due to the shutdown.

The market rebounded slightly on Friday while the Dow fell. This was largely due to investors beginning to buy back into technology markets, specifically the key technology stocks, after their large declines the day prior.

Past Earnings Report:

This Week in Crypto

Market Trends:

The crypto market traded sideways and slightly lower throughout last week, with major coins struggling to gain momentum amid thin year-end conditions. Total crypto market cap slipped by roughly 0.5 percent over the past week, while trading volume declined much more sharply: around 20%. Bitcoin (BTC) hovered in the high-$80,000 range and finished the week at $87,636 (-0.70%), while Ethereum (ETH) fell to $2,940 (-1.17%). Solana (SOL) also declined 1.23% to $124.24. Dogecoin (DOGE) saw heavier losses, falling 6.26% to $0.1238, and Cardano (ADA) ended the week down 2.05% at $0.3662. Price moves remained relatively small across the market, largely due to falling liquidity, continued ETF outflows, and cautious risk management by investors heading into year-end.

One of the main factors limiting price movement last week was the sharp drop in market liquidity. Overall trading volume fell by more than 20 percent as participation wavered, keeping price moves relatively small. Spot trading, or trading at market price for the instant delivery of an asset, on major exchanges also declined, making it more difficult for prices to move significantly in either direction. It is also important to note that leverage has not yet fully left the market, as derivative positions continued to remain elevated.

Spot Bitcoin and Ethereum ETFs continued to experience net outflows despite prices remaining largely stable, indicating that investors or holders have started to reduce their holdings of the ETFs in a profit-taking manner. In the absence of consistent inflows to sustain rallies, Bitcoin struggled to push convincingly above resistance near $90,000, ultimately capping upside. Derivative markets continued to be active despite funding rates remaining close to neutral. This implied that rather than committing to a definite bullish or bearish trend, traders were more concerned with short-term positioning, which allowed Bitcoin to serve as a stabilizing force for the larger market and reduce volatility.

Macro conditions did little to offset these pressures. The longer-term outlook for risk assets was supported by recent US GDP data, which came in better than anticipated, and the ongoing decline in inflation. Although there were brief increases as a result of these developments, there was little follow-through. Throughout the week, investor sentiment remained cautious, with low conviction and fear continuing to rule. As a result, despite generally positive economic data, risk appetite stayed low.

Altcoins faced additional challenges on top of this backdrop. Bitcoin dominance remained elevated as capital stayed concentrated in larger assets, leaving less room for rotation into more volatile names. Several projects also saw token unlocks during the week, which added supply to an already thin market. Combined with ETF rotation and year-end liquidity constraints, these factors made it difficult for mid-cap and smaller tokens to recover. Most altcoins continued to lag and trade defensively due to fewer strong catalysts and fading participation.

Live Crypto Markets:

Looking Towards the Future

Upcoming Important Economic Events:

Monday: Pending home sales
Tuesday: S&P Case-Shiller home price index (20 cities) • Minutes of Fed's December FOMC meeting • Chicago Business Barometer (PMI)
Wednesday: Initial jobless claims
Thursday: Markets Closed for New Year’s Day
Friday: S&P final U.S. manufacturing

Future Earnings Reports:

Market Recap (12/28/25)