U.S. Equities End Year Firm as Inflation Cools; Gold and Silver Rally

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Main Content:

1.    Major indices’ weekly performance 

2.    U.S stocks weekly wrap 

3.    S&P 500 sector index weekly/month performance 

4.    China/Hong Kong stocks weekly wrap 

5.    Singapore stocks weekly wrap 

6.    Major indices weekly chart and technical support & resistance levels

U.S.

For the week of Dec 26, major U.S. indices pushed to fresh record highs amid light trading volumes and generally supportive macro data. The S&P 500 Index (SPX) and Dow Jones Industrial Average (DJI) both closed at new highs, while the Nasdaq Composite (COMP) also finished higher, supported by continued optimism around AI. Gold and silver prices surged, extending their year-to-date rally as investors sought traditional safe-haven and inflation-hedge assets amid mixed economic signals.

As 2025 draws to a close, U.S. equity markets have delivered strong double-digit gains, supported by resilient economic growth, easing inflation pressures, and sustained earnings momentum—particularly within technology-related sectors. Refer to the table below for the major indices' weekly performance.

Key highlights for the week and next:

1.    U.S. growth remains resilient. U.S. GDP expanded at an annualized 4.3% in 3Q, the fastest pace in two years and well above expectations, led by robust consumer spending and reinforcing confidence in late-cycle economic resilience. 

2.    Inflation continues to cool. November CPI surprised to the downside, with headline inflation easing to 2.7% and core CPI slowing to 2.6%, the lowest since early 2021. 

3.    Labor market softens gradually. Nonfarm payrolls rose 64k, rebounding from October’s government-related decline, while unemployment edged up to 4.6%, consistent with a cooling—but still orderly—labor market adjustment. 

4.    Business momentum moderates. The Flash U.S. Composite PMI eased to 53.0, a six-month low, signaling slower expansion across manufacturing and services as firms adopt a more cautious hiring stance. 

5.    Fed policy bias tilts toward measured easing. Softer wage growth and hiring trends reinforce expectations for gradual policy easing into 2026, with markets pricing limited rather than aggressive rate cuts despite inflation remaining above target. 

6.    Precious metals extend their uptrend. Gold and silver advanced, supported by declining real yields, expectations of future Fed easing, and continued diversification demand amid late-cycle uncertainty.

 

SPX sectors in play

10 out of the 11 SPX sectors ended the week higher, with technology (XLK) and Communication Services (XLC) outperformed, while Consumer Staples (XLP) lagged. Refer to the SPX sector ETF weekly performance table below.

Indices technical levels

Both SPX and DJI indices closed at new record, while Nasdaq(COMP) index also finished higher. Click below three indices for their weekly charts.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

Mainland China stock markets rose for the week. The Shanghai Composite Index(SSE) added 1.88% and the blue-chip CSI 300 advanced 1.95%. In Hong Kong, the benchmark Hang Seng Index recorded a modest gain of 0.50% as it closed for the week starting on Thursday due to holidays.

Key highlights for the week and outlook for China/HK:

1.    No official economic indicators were released during the week. The latest batch of official data released earlier in December showed that November retail sales grew at the slowest year-over-year pace since the pandemic, while fixed asset investment was on track for the first annual contraction since 1998. 

2.    Despite numerous indicators signaling lackluster growth in the economy, most analysts expect China will meet its official growth target of about 5% this year. Earlier in December, the World Bank estimated that China’s economy grew 4.9% this year and forecast growth of 4.4% in 2026 as property weakness, trade policy uncertainty, and other headwinds persist. 

Refer to below Hang Seng Index constituents’ weekly performance table.

Click below for SSE and .HSI weekly chart.

SSE weekly chart

.HSI weekly chart

 

Singapore

The Straits Times Index (STI) hit a new record, adding 1.45% this week to close at 4636.15. The two index heavyweight DBS and OCBC banks hit new record this week. DBS closed at 56.23, OCBC at 19.81, while UOB also finished higher, closing at 35.13. Refer to below STI index stocks’ weekly performance.

Click below for STI weekly chart.

STI weekly chart

Source: Some contents and data excerpted from various public market reports. Please comment to claim copyright ownership of any material, and I will remove it if necessary.