The S&P 500 notched a 1% rebound on Friday, December 5, 2025, capping a week of modest 0.3% gains and positioning the index a mere 0.25% from its October all-time high of approximately 6,880. Tame PCE inflation—2.9% annual through September, with core at 2.8%—bolstered rate-cut bets (86.9% odds for December’s quarter-point trim), lifting the benchmark 13.28 points to 6,870.40.
This quiet ascent, up 8 of 9 sessions over two weeks (5.5% rally), decoupled from Big Tech: healthcare (Eli Lilly +Biogen) and small-caps (Russell 2000 +0.8%) spearheaded, as AI scrutiny prompted profit-taking in semiconductors. Dow (+0.22% to 47,954.99) and Nasdaq (+0.31% to 23,578.13) mirrored the tepid uptick, with weekly advances of 0.5% and 0.91%, respectively—second straight for all majors.
Analysts eye 2026 targets: JPMorgan at 7,500 (10% upside), HSBC at 7,500, Deutsche at 8,000, anchored in AI‘s transformative promise despite transitional risks. Post-shutdown flight normalizations and Netflix’s $83B Warner Bros. bid add tailwinds, yet VIX’s 19.50 perch signals caution ahead of Fed deliberations.
