Market Musings 1/5/2026
Quick thoughts on the markets and major portfolio news. Not on Ursa yet? Download Ursa from the App Store!
December ends quietly, but #AI caps a massive year for markets
Markets ended December with a whimper, but it still capped a massive year. Stocks finished December just slightly lower, but still locked in a year up nearly 17%.
That performance was driven largely by one theme: #AI. Throughout the year, the #AI trade powered gains in technology, communications and growth to lead markets higher.
However, December told a more mixed story. Momentum in #AI cooled while cyclical stocks began to outperform with #RateCuts in focus. It reflected improving expectations for a broader #Goldilocks economy â cooling #Inflation and soft #LaborMarkets that may be stabilizing rather than breaking.
So, whatâs next?
The new year kicks off with CES, the annual tech tradeshow. Expect a wave of #AI announcements, but historically, it tends to be more of a âsell the newsâ event, especially when expectations are already so frothy.
Beyond tech, macro data will be in focus. With the government mostly caught up after the shutdown, markets will finally return to its normal cadence on the economy. #LaborMarkets data arrives later this week, followed by new #Inflation data mid-month to see if the recent improving #Goldilocks trend continues.
And one more item to watch⊠a Supreme Court decision on #Tariffs is approaching with potentially huge implications for the economy.
Thatâs the setup as investors re-engage after the holidays for 2026âŠ
No Ursa account yet? Download Ursa here!
The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursaâs full disclosures here.
Original Photo by fauxels.