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December Rally Beckons: Stocks Eye Strong Year-End
1 Dec
Summary
- Stock futures show little change entering December after a strong 2025.
- Seasonality favors equities with December historically strong for the S&P 500.
- November was turbulent, with major indices showing mixed results.
As December 2025 begins, stock futures indicate a steady start following a robust year for the markets. The Dow Jones Industrial Average futures saw a slight increase, while the S&P 500 and Nasdaq-100 futures held steady. Investors are looking forward to a historically favorable month, as December has been the third-best month for the S&P 500 since 1950, often bringing positive momentum.
Last month, November, proved to be a volatile period. The S&P 500 and Dow Jones Industrial Average ended the month flat, while the Nasdaq Composite experienced a decline, breaking a seven-month winning streak. These fluctuations were partly driven by investor concerns regarding the valuations of artificial intelligence stocks.
Despite the November turbulence, strategists express optimism for a positive December. A recent rally has improved market breadth, and growing expectations of a potential interest rate cut in December are contributing to a more constructive outlook for equities. This sentiment suggests a potentially strong close to the year for Wall Street.
