On December 16, 2025, markets recorded modest declines as Wall Street slipped on weakness in healthcare and energy stocks, while investors weighed softer business surveys and delayed U.S. data against growing expectations of further Federal Reserve rate cuts next year.
Crude prices fell to their lowest level since 2021, pulling energy shares lower, and the broader S&P 500 and Nasdaq hovered near three-week lows as doubts persisted around lofty tech valuations and the durability of global growth. In the background, Bitcoin fell back toward the lower end of its recent range, while gold edged higher as the dollar and Treasury yields eased.
On the diplomatic front, attention in Europe stayed firmly on the war in Ukraine and how to secure long-term funding for Kyiv. European Union governments worked on a plan to use frozen Russian state assets to finance support for Ukraine while sharing legal and financial risks more evenly across member states.
Belgium, which holds the bulk of these reserves at Euroclear, pushed partners for stronger guarantees in case of lawsuits, and leaders are expected to settle the remaining points at a summit later in the week. Moscow again warned that using its reserves would amount to theft and threatened retaliation, including possible moves against European investors inside Russia.
European officials at the same time continued to manage the broader fallout from President Donald Trump’s tariff and trade strategy, which has reshaped supply chains and added uncertainty for export-heavy industries.
In Asia, Hong Kong’s labor market appeared stable, with the seasonally adjusted unemployment rate unchanged at 3.8% in the three months to November, and local officials cited firm domestic demand and better consumer confidence as reasons to expect continued support for jobs despite global headwinds.
On the economic front, U.S. equities slipped as investors digested a run of softer data and sector-specific news. Healthcare shares declined after Pfizer signaled a challenging year ahead, pointing to weaker Covid product sales and tighter margins, while energy names lagged as the slide in crude prices raised questions about global demand.
The latest employment report showed nonfarm payrolls up 64 thousand in November after a steep October drop linked to government spending cuts, and the unemployment rate rose to 4.6%. The figures were complicated by changes to the household survey after a long federal shutdown disrupted data collection and forced the Labor Department to skip an October unemployment reading.
According to Reuters, survey data from S&P Global indicated slower but still positive growth, with the composite index for December pointing to easing momentum in both manufacturing and services and softer new orders, including the first fall in goods demand in about a year, yet still consistent with output expanding. Futures markets now price in about 58 basis points of Fed easing next year, more than officials suggested last week following three cuts in late 2025.
In Europe, business surveys pointed to only modest expansion in the euro area, held back by a deeper downturn in German industry, while the United Kingdom showed a slight improvement as clarity on tax and spending plans eased some uncertainty.
Gold inched higher as a softer dollar and the rise in the U.S. unemployment rate supported demand for the metal, while Bitcoin extended its decline, trading below $86000 and about 30% under its record peak above $126000 as sellers kept selling whenever prices bounced back.
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