Weekly Market Commentary -  Dec. 22, 2025

Week In Review

A mixed November non-farm payrolls report, which also contained data from October due to the U.S.

government shutdown, worked in concert with a below-consensus Consumer Price Index print to bolster investor optimism for monetary policy easing in 2026, driving the S&P 500 higher. While nonfarm payrolls increased by 64,000 in November, the economy shed 105,000 jobs in October and the unemployment rate rose to 4.6%.

Concurrently, the economy saw more modest price increases, with the CPI slowing to a 2.7% annual

rate, a decline from 3.0% in September. 3 Notwithstanding the divergence between market expectations and the Fed’s most recent projections for 2026 rate cuts, evidence of slowing job growth, rising unemployment and cooler inflation suggests the prospects for more aggressive interest rate reductions in 2026 are arguably higher than the Fed's more cautious forecast. This possibility is strengthened by the presumptive appointment of a dovish Federal Reserve Chair in 2026. Potential policy shifts and sector rotation nudged the S&P 500 up +0.1%.

This Week

The economic calendar will be very light for the holiday-shortened week. Despite an abbreviated

trading schedule, market participants will have several key reports delivered on Tuesday, including revisions to both the third quarter GDP and the July, August, and September PCE Price Index. Updates for durable goods orders, industrial production, initial jobless claims and consumer confidence round out the planned data releases. 4

Portfolio Themes

Diversifying sources of yield across asset classes is a prudent strategy for income generation. Each

asset class has a distinctive risk-return profile. Strategic asset allocation may mitigate the impact of a downturn in any single market and improve portfolio resilience. Simplicity offers diversified income portfolios that may boost income reliability during a market cycle.

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Data: Unless otherwise noted, data for charts, graphs, and tables is sourced from YCharts. Portfolio Themes idea sourced from J.P. Morgan Asset Management.

1 Style box returns use various Russell indices tied to specific areas of the market cap (vertical) and style (horizontal) spectrums. Indices are not typically available for direct investment, are unmanaged, and do not incur fees or expenses.

2 Index Statistics: P/E Ratio – Displays the forecasted P/E ratio of the representative index ETF. Yield - Dividend-per-share divided by current share price. Table statistics are updated weekly. MSCI indices represent broad global and international equity markets. Indices are represented by iShares ETF proxies (IVW, IVV, IVE, ACWI, and ACWX).

3 Bureau of Labor Statistics. 4 MarketWatch. Past performance does not guarantee future results.

Weekly commentary and investment advisory services are provided by Simplicity Wealth, LLC a SEC Registered Investment Adviser. Registration does not imply a certain level of skill or training. The information provided is for informational purposes only and does not constitute any form of advice or recommendation. The information contained within has been obtained from various sources and is believed to be accurate at the time of publication.