Eddid Financial·2025-12-22 06:14Labor Market - October non-farm employment decreased by 105,000, primarily due to a significant decline in government jobs[6] - November non-farm employment increased by 64,000, exceeding market expectations of 50,000; unemployment rate rose to 4.6%, the highest since October 2021[6] - November average hourly wage growth year-on-year was 3.5%, the lowest since June 2021, but outpaced inflation (November CPI at 2.7%)[6] Inflation Data - November CPI decreased to 2.7%, below the expected 3.1%; core CPI fell to 2.6%, also below expectations of 3.0%[9] - The market reacted positively, with the S&P 500 rising by 0.8% on the day of the inflation release[9] Market Sentiment - The S&P 500 index fluctuated, maintaining a "neutral" sentiment throughout the week; VIX closed at 14.91, below the critical value of 20[13] - Global equity markets saw a weekly change of 0.0%, with developed markets up by 0.1% and emerging markets down by 1.5%[17] U.S. Stock Market Performance - S&P 500 rose by 0.1% for the week, with a year-to-date increase of 16.2%; Nasdaq increased by 0.6% (year-to-date up 20.6%)[18] - The information technology sector saw a significant earnings upgrade of 7.7%[28] Sector Analysis - Strong sectors included software services, automotive, and pharmaceuticals; software services had an estimated daily fund intensity of approximately $22.7 billion, ranking first[28] - The performance of small-cap stocks represented by the Russell 2000 decreased by 0.9% for the week, with a year-to-date increase of 13.4%[18] Earnings Revisions - Earnings for the Nasdaq 100 and S&P 500 were revised upwards by 1.8% and 0.4%, respectively; PE ratios were adjusted downwards by 1.2% and 0.3%[28] - The overall market sentiment remains bullish, particularly for the information technology sector, amid ongoing earnings upgrades[28]