Rosemeyer Management Group
December 2025 Market Snapshot
December in Review
Markets finished a back-and-forth 2025 with mixed results with most US equities finishing flat for December, while emerging markets advanced to finish a strong year – the first year outperforming US equities after several years of lagging. The Nasdaq finished lower for the month, indicating a continued broadening of the market rally beyond the Mag 7 stocks. Altogether, all major equity classes posted double-digit returns in 2025, with the S&P 500 continuing its three-year streak of such performance. Treasury yields advanced slightly in December leading to negative bond returns. However, bonds delivered strong performance in the year as rate cuts resumed and provided stability amidst a volatile 2025 for equities.
2025 was the first year since 2020 in which every major asset class delivered positive returns.
| Index | 1 Month | YTD |
|---|---|---|
| Dow Jones Industrial Average | 0.92% | 14.92% |
| Standard & Poor’s 500 Average | 0.06% | 17.88% |
| Russell 2000 (Small Cap Index) | -0.58% | 12.81% |
| Total U.S. Stock Market | -0.07% | 17.13% |
| MSCI ACWI ex USA (Intl. Index) | 3.00% | 32.39% |
| Barclay’s U.S. Agg. Bond Index | -0.15% | 7.30% |
Looking Forward
2025 closed with modest returns on the back of three 25-point interest rate cuts in the last few months of the
year. As we move into 2026, investors will continue to digest economic news and anticipate Federal Reserve
policy in the coming months. Annualized inflation currently sits at 2.7%, much more constrained than
investors expected nine months ago. Unless drastic changes occur, the general consensus is that inflation
has been controlled. It is expected that the central bank will keep rates as they are for a few months to allow
for markets and the economy to adjust to the lower rates, especially as recent positive job reports may
indicate a strengthening labor market. Rates still remain elevated above pre-pandemic levels, though, which
provides a positive background for bonds in 2026. In US equities, growth stocks led the performance again in
2025. Of note, though, is that the back half of 2025 saw strong performance in value and small-cap stocks.
This broad-based market rally outside of the tech-heavy Magnificant 7 stocks could serve to reduce market
volatility into 2026 and quell investor fears of an “artificial intelligence bubble.”
On a Personal Note
The end of 2025 marks a bittersweet moment for RMG. Our beloved first
employee, Patricia Eggers, enters retirement! Over the past twelve years,
Patti has overseen multiple office openings, team events, new employee
hires, and countless Christmas blessings for our clients among many, many
other tasks we would throw at her. While we are sad to see her go we are
incredibly excited for her to enjoy retirement with her husband, Dcn. Lee. We
were truly blessed to have her help guide our business growth the past
twelves years and her presence will be greatly missed. Enjoy your retirement
Patti, you have earned it!
Rosemeyer Management Group
Licensed in CO, FL, IA, IL, MA, MN, MO, NV, NY, WA, WI, WV TX
i ccmg.com, January 6, 2026
