1. The Federal Reserve Is Re‑Expanding Liquidity Since early December, the Federal Reserve has expanded its balance sheet by roughly $105 billion, marking the fastest increase since the regional banking turmoil of 2023. This move aims to ease pressure on bank reserves, which had been tightening significantly. St. Louis Federal Reserve Key points The Fed’s balance sheet had fallen by about 30% since 2022, draining liquidity from the system. Facing renewed stress, the Fed resumed injections to stabilize reserves. It is now purchasing around $40 billion in U.S. Treasuries per month, supporting financial markets. Historically, such liquidity waves tend to boost risk appetite and lift asset prices. Bottom line: the Fed has shifted from tightening to quietly re‑adding liquidity. 2. Private‑Secto

A Market Rotation Takes Hold Early trading in 2026 is sending a clear signal: leadership in the stock market is shifting. While mega-cap technology stocks, the so-called Magnificent 7, are losing momentum, small-cap stocks are off to a powerful start. $Roundhill Magnificent Seven ETF(MAGS)$ : −0.1% in 2026 Russell 2000 (small caps): +5% in 2026 This divergence highlights a notable change in investor preferences after years of large-cap dominance… Why Investors Are Rotating Into Small Caps Several forces are driving this renewed interest in smaller companies: 1. Economic Optimism small-cap stocks tend to benefit most from accelerating economic growth. Investors appear increasingly confident in the resilience of the U.S. economy. 2. Lower Interest R

Markets Near Highs as 2026 Begins U.S. stocks enter the first full week of 2026 just off record highs, closing out the Santa Claus rally period with a steady, if unspectacular, performance. Dow Jones led last week, rising 0.66% $S&P 500(.SPX)$ gained 0.2% Nasdaq finished roughly flat, as weakness in some “Magnificent 7” stocks was offset by strength in semiconductors Investors are beginning to shift their focus from year-end momentum to what the 2026 landscape may hold, amid lighter holiday trading volumes. A Big Week for Jobs and the Fed Outlook After months of disrupted data caused by the government shutdown, economic releases are finally back on schedule, and the spotlight is firmly on the labor market. Key expectations: December nonfarm pa

A Quiet but Strong Finish to 2025 U.S. stocks wrapped up last week just shy of record highs as the Santa Claus rally continued to unfold. After five straight positive sessions, markets paused slightly on Friday, but the broader picture remained upbeat: $S&P 500(.SPX)$ : +2.3% for the week Nasdaq Composite: +2.5% Dow Jones: +1.6% With trading volumes light and volatility muted, Wall Street is entering another sleepy holiday week, but sentiment remains constructive as investors look ahead to the new year. Santa Claus Rally: Momentum Into Year-End Santa Claus The Santa Claus rally, typically covering the final five trading days of December and the first two of January, appears firmly in place. After a volatile year marked by tariff shocks and pol

Markets Extend Their Momentum U.S. stocks started the week on a positive note, building on last week’s strength and raising hopes of an early Santa Claus rally. Santa Rally Dow Jones: +0.5% $S&P 500(.SPX)$ : +0.6%, now just 0.3% below its Dec. 11 record high $NASDAQ(.IXIC)$ : +0.5% With major indexes hovering near all-time highs, investor confidence appears to be improving as the year winds down. Santa Rally Back in Focus The so-called Santa Claus rally, traditionally spanning the last five trading days of the year and the first two of the next (Dec. 24 to Jan. 5), is firmly back on investors’ radar. Market watchers suggest the trend favors further upside, potentially allowing stocks to close 2025 at

U.S. equity markets ended the week on a firmer note, extending a late-week rally that helped major indexes stabilize after recent volatility. While the gains were modest, the tone was constructive, with investors increasingly focused on cooling inflation, a supportive central bank backdrop, and the prospect of a broader market rally as 2025 draws to a close. The $S&P 500(.SPX)$ rose 0.9% on Friday, securing a small weekly gain of 0.1% and avoiding a second consecutive weekly decline for the first time since June. The Nasdaq Composite outperformed, climbing 1.3% on the day and 0.4% for the week, driven largely by renewed strength in technology stocks. $NVIDIA(NVDA)$

Investors received an early holiday gift Thursday as inflation came in well below expectations, boosting stocks and reviving optimism that the Federal Reserve may have more room to cut interest rates. The consumer price index rose 2.7% year over year in November, significantly under economists’ 3.1% forecast. Core inflation, which excludes food and energy, increased 2.6%, also below expectations. Inflation Markets React Positively Stocks rallied on the softer inflation data: $NASDAQ(.IXIC)$ : +1.4% $NVIDIA(NVDA)$ $Palantir Technologies Inc.(PLTR)$ $Micron Technology(MU)$ S&P 500: +0.8% Dow Jones Industrial Average: +6

If one word defined the session, it was mixed. Economic data lacked a clear message, equities struggled for direction, and visibility for the rest of the week remains limited as investors parse noisy signals from both the consumer and the labor market. Mixed Signals Markets End the Day Split $NASDAQ(.IXIC)$ : +0.2% (recovering from earlier losses) $S&P 500(.SPX)$ : –0.2% Dow Jones: –302 points (–0.6%) Market breadth was weak, and sentiment soured as investors reacted to rising unemployment and inconsistent economic indicators. Market Snapshot Hot Stock: $Comcast(CMCSA)$ +5.4% Biggest Loser: Phillips 66 –6.9% Best Sector: Information Technology +0.3% Worst S

After a shaky open, U.S. equities staged a powerful intraday reversal, closing with fresh records for both the Dow Jones Industrial Average and the S&P 500, even as tech stocks lagged. Dow Jones: +1.34% $S&P 500(.SPX)$ : +0.21% Nasdaq: –0.25% $NVIDIA(NVDA)$ Hot Stock: Royal Caribbean +7.4% Biggest Loser: Oracle –10.8% Best Sector: Materials +2.2% Weakest Sector: Communication Services –1.0% The late-session surge reflected resilient investor sentiment, continued rotation into cyclicals, and a stabilizing policy backdrop from the Federal Reserve. Market Drivers: Tech Weakness vs. Broader Strength Tech Under Pressure $Technology Select Sector SPDR Fund(XLK)$

 Consumer sentiment in the U.S. improved slightly in December, according to preliminary data from the University of Michigan survey, even as Americans continue to face a frozen job market and persistent inflationary pressures. Consumers  Key Survey Findings - Sentiment index rose to 53.3, up from 51 in November. Bloomberg's economist survey had projected 52. - This marks the first monthly increase since July. - Despite the gain, sentiment remains 28% lower than a year ago. Commentary from Joanne Hsu (Survey Director) - Current conditions were little changed, but expectations improved, led by a 13% rise in expected personal finances. - Gains were broad‑based across age, income, education, and political affiliation. - However, expected personal finances remain 12% below January lev

Palantir Technologies Inc. $Palantir Technologies Inc.(PLTR)$  announced a partnership with TWG AI and NVIDIA Corp. $NVIDIA(NVDA)$  to deploy artificial intelligence and computer vision technology in rodeo sports through Teton Ridge, a western sports and entertainment company.   PLTR NVDA Purpose of the collaboration The initiative aims to deliver real-time AI‑driven analytics for rodeo events by processing data locally through NVIDIA's edge computing infrastructure, including the Holoscan platform and RTX PRO 6000 Blackwell Server Edition GPUs.  This eliminates the need to send video feeds to cloud systems for analysis.    Testing and performance - Teton