Heading into the last full trading week of 2025, focus shifts to delayed government data on the economy due to the federal shutdown. Fed Chair Powell warns of data muddied by the shutdown and advises cautious interpretation until year-end data in January. Jobs report and inflation data expected to paint a grim picture for the economy.

AI trade leaders suffer losses as Oracle and Broadcomm stocks plummet after earnings reports. Oracle’s stock value drops significantly due to investor concerns about overinvestment and unsustainable borrowing. Broadcomm’s record revenues overshadowed by lower margins in AI-chip business, leading to an 11% stock decline. Analysts adjust fair value estimates and recommend buying opportunities amid the downturn.

Small-cap value stocks see a 2.0% rise, with mid value stocks up 1.7% last week. Market anticipates more interest rate cuts in 2026, conflicting with Fed guidance. Large-cap stocks outperform small-company stocks this year, suggesting a repositioning trend rather than fundamental shifts. Ownership disclosure: authors do not own shares in mentioned securities.

Read more at Morningstar: Markets Brief: Economic Data Returns, but Investors Should Tread Carefully