Latest Finance-Economy News
Wall Street Eyes Strong Year-End Close Amid Record Highs
The S&P 500 hit a record high, up nearly 18% in 2025, with Nasdaq up 22%, driven by optimism beyond Big Tech into finance, transport, and healthcare sectors. The Fed cut rates by 75 basis points to 3.50%-3.75%, boosting bull momentum ahead of December minutes
. Investors watch Trump's Fed chair nomination as Powell's term ends in May 2026
.
US Economy Grows 4.3% in Q3, Beats Expectations
US GDP expanded 4.3% in July-September, surpassing 3.2% forecasts, fueled by 3.5% consumer spending rise and exports. The economy powers through 2025 trade shocks and immigration issues, defying recession fears
. Strong holiday travel with record 2.9 million daily passengers signals consumer resilience
.
S&P 500 Up 17.8% YTD, Banks and Semiconductors Lead Gains
S&P 500 gained 1.4% last week (17.8% YTD), Dow up 14.5%, with banks rising 1.8% and semiconductors jumping 2.0% (44.7% YTD). Gold index HUI surged 4.3% (171.3% YTD) amid bullion rally
. Utilities and biotechs also advanced, reflecting broad market strength
.
US Economy Resilient Despite Tariffs, Job Slowdown in 2025
US growth hit fastest pace in two years, stock market at highs, despite tariffs, slowing jobs, and inflation. Unemployment at four-year high, layoffs up, but companies absorbed tariff costs with moderate price rises
. Consumer spending drives activity amid affordability strains for households
.
Japan-US Accelerate $550 Billion Investment Initiative
Japan and US to speed up $550 billion Japanese investment into US under trade deal to lower Trump tariffs. Ministers aim for first project announcement soon
. This bolsters bilateral economic ties amid global shifts
.
China Plans 15th Five-Year Plan Review for 2026-2030
China's NPC session to deliberate 2026-2030 Five-Year Plan draft and 2025 economic report implementation. Focus on national economic and social development amid global uncertainties
. Agenda underscores long-term growth strategy
.
Upcoming Economic Data: US Retail, Wholesale Inventories Dec 29
US Retail Inventories Ex Autos MoM Adv expected at 0.1%, Wholesale Inventories MoM Adv at 0.1% on Dec 29. Japan Goods Trade Balance Adv at $-86.0B
. Key releases signal inventory trends and trade health
.
Global PMI and GDP Data Due Dec 31: Germany, South Africa
Germany GDP YoY forecast at 6% (prev 5.5%), South Africa Private Sector Credit YoY at 7.26% (prev 7.4%) on Dec 31. Eurozone M3 Money Supply YoY at 2.8%
. Indicators to gauge manufacturing and credit momentum
.
Calls for Bank Reform to Align with Public Interest Post-Crises
Banks' risky behavior leads to public bailouts; reform needs higher tail-risk capital, countercyclical buffers. Past crises cost trillions in guarantees, lingered output losses
. Focus on incentives for stability over short-term profits
.
US Holiday Air Travel Hits Record Amid Economic Uncertainty
US airlines expect 2.9 million daily passengers Dec 19-Jan 5, up 1.5% YoY, despite shutdowns. Domestic round-trip fares average $900, up 7% from 2024
. Reflects resilient consumer spending
.
IRS Announces $1,390 Direct Deposit Relief Payments
IRS to issue $1,390 direct deposits amid inflation, high rents, gas, and grocery costs. Targets relief for affected Americans facing economic pressures
. Part of ongoing support measures
.
China's External Debt Steady, India Retail Sales Strong Dec 31
India External Debt at $747.2B (forecast $750B), Chile Retail Sales MoM 1.4%, YoY 8.4% due Dec 31. South Africa Trade Balance ZAR15.58B
. Highlights emerging market dynamics
.