Market Review: December 2025 and Outlook for January 2026
As your fiduciary advisor, Prism Capital Management remains committed to putting your interests first through disciplined, long-term investment strategies tailored to your goals. As we enter 2026, here is a concise review of December 2025 market performance and our outlook for January.
December 2025: A Positive Close to a Strong Year
U.S. equities ended 2025 on a solid note, delivering a third straight year of strong gains. The S&P 500 rose about 16% for the full year, the Dow Jones Industrial Average advanced roughly 13%, and the Nasdaq Composite posted even higher returns, driven by continued enthusiasm for technology and AI.
December itself was more subdued but still constructive. Major indices posted modest gains or finished nearly flat, with some late-month profit-taking after the year’s robust run. Key supports included resilient consumer spending, a healthy labor market, and steady progress on inflation. Year-end trading volume was light, contributing to typical holiday-season fluctuations.
International and emerging markets showed strength in the final weeks, while fixed-income markets remained stable with Treasury yields in a narrow range.
January 2026 Outlook
The economic backdrop remains supportive heading into the new year, with most strategists forecasting moderate single-digit gains for U.S. stocks in 2026, suggesting a more normal pace after recent exceptional returns.
Key items to watch in January:
Earnings Season: Fourth-quarter results and 2026 guidance, especially from technology companies.
Economic Data: Employment reports, manufacturing indicators, and ongoing inflation trends.
Policy Developments: Fiscal, trade, and geopolitical factors that could influence sentiment.
Risks include elevated valuations in some sectors and potential volatility from unexpected events. Opportunities may lie in small- and mid-cap stocks, value sectors, and international markets, which have lagged large-cap growth in recent years.
Our Perspective
We do not try to predict or time short-term market moves. Instead, we focus on broad diversification, risk management, and alignment with your personal objectives and time horizon. Recent strong performance reinforces the value of staying invested with a balanced approach that includes quality fixed-income exposure where appropriate.
Financial Services for Real People
Founded for the benefit of clients, Prism Capital Management, a Fortis Financial Group Company, is a Seattle and Skagit-based firm with a deep commitment to providing guidance that is based on the sum of our experience and expertise. We are committed to putting client interests first and to stewarding both wealth and well-being for those we serve. We have a singular measure of success: the results we get for our clients.
As an Investment Advisor, we have a fiduciary duty to act in YOUR best interest. From planning to investment management to advice on buying a car, we are your financial life partners.
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Fortis Capital Management LLC (“Fortis”) DBA Fortis Financial Group and Prism Capital Management is registered as an investment adviser with the Securities and Exchange Commission. Registered investment adviser does not imply a certain level of skill or training. Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances. The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions. This article was written by a financial professional and is not intended as legal or investment advice.
