Weekly Market Recap (Dec 15–19) and Holiday Week Outlook

U.S. equities closed last week on firmer footing after a volatile stretch, with late-week strength helping stabilize sentiment ahead of the year-end holiday period. The Nasdaq Composite led performance, finishing the week modestly higher following a sharp rally on Thursday and Friday, driven primarily by large-cap technology and semiconductor names. The S&P 500 ended the week slightly positive, while the Dow Jones Industrial Average underperformed, weighed down by weakness in select industrial and consumer discretionary stocks. Despite midweek drawdowns, investors stepped back into risk assets late in the week, positioning for a constructive seasonal setup and reaffirming confidence in large-cap growth leadership.

Macroeconomic data was a key driver of market direction. November inflation readings came in below expectations, reinforcing the narrative that disinflation remains intact and reducing concerns that the Federal Reserve may need to reverse course on policy. Labor market data showed continued job creation alongside a modest rise in the unemployment rate, signaling gradual cooling rather than economic deterioration. Treasury yields remained range-bound, with the 10-year yield ticking slightly higher late in the week following overseas central bank actions, but remaining consistent with a stable growth outlook. Taken together, last week’s data strengthened the case for a soft landing and supported the view that monetary policy can remain accommodative into 2026.

Corporate earnings and company-specific developments were dominated by the semiconductor and artificial intelligence complex. Micron Technology delivered a standout earnings report, materially exceeding analyst expectations and issuing strong forward guidance tied to accelerating demand for high-bandwidth memory used in AI data centers. Micron’s results triggered a sharp rally in its shares and reignited upside momentum across the semiconductor space, lifting peers such as Nvidia and Advanced Micro Devices. Earlier in the week, concerns around elevated capital expenditures tied to AI infrastructure briefly pressured technology stocks, but Micron’s report helped reset expectations and restore confidence in AI-driven earnings durability.

Not all corporate news was positive. Nike reported better-than-expected quarterly earnings but issued a cautious outlook, citing weakening demand trends in China and ongoing inventory normalization efforts. The guidance overshadowed the earnings beat and resulted in a sharp selloff, highlighting the market’s sensitivity to forward-looking commentary in globally exposed consumer brands. In contrast, FedEx delivered a strong earnings beat, driven by aggressive cost controls and resilient shipping volumes. FedEx also raised its full-year outlook, reinforcing confidence in industrial demand and broader economic activity as the company continues to streamline operations.

Looking ahead to the upcoming holiday-shortened trading week, catalysts will be limited but still relevant. There are no major earnings reports scheduled, shifting investor focus toward economic data releases, including updated GDP figures, consumer confidence readings, and weekly jobless claims. Trading volumes are expected to be light due to early market closures surrounding Christmas, which can amplify short-term price moves. Historically, the final trading days of December favor equity strength, and with inflation pressures easing and monetary policy expectations stabilizing, conditions remain supportive for a constructive year-end close. That said, thin liquidity and profit-taking activity could introduce pockets of volatility, making selectivity and discipline critical as markets transition into the final days of the year.