Intro
In the last two weeks, markets showed their strength as the S&P 500 hit a record close, and the economy followed suit, with Q3 GDP growth beating estimates. Key economic indicators such as inflation and gas prices also helped shape the broader economic picture. Let’s dive in!
ClariVise Insights
- Market Highs: U.S. stock markets continued their Santa Claus rally with the S&P 500 hitting a record closing high on Christmas Eve. The Santa Claus rally refers to a period of historically stronger market performance in the final trading days of December and the start of January.
- Q3 GDP Growth: The U.S. economy grew 4.3% in Q3, surpassing the expected 3.2%, driven by strong consumer spending and increases in exports and government spending. Though the report was delayed, markets showed little reaction as the data is backward-looking.
- Inflation Report: Inflation rose 2.7% year-over-year in November, down from 3% in September, indicating a slowdown partly due to incomplete data from the recent government shutdown. See the chart below for the full breakdown:
What Else is in the News
- Falling Gas Prices: Lower gas prices, now below $3 a gallon nationally, ease inflationary pressures and may boost consumers’ disposable income. This relief supports broader economic growth and investment opportunities amid high holiday travel demand and ongoing cost-of-living concerns.
- Trump Accounts Debut: Trump accounts will begin in mid-2026, allowing parents and others to make after-tax contributions up to $5,000 annually. Children born 2025–2028 qualify for government seed funding of $1,000, with $250 contributions from philanthropists like the Dells and Dalios for eligible participants.
- Gold and Silver Surge: Gold and silver prices reached record highs, rising nearly 70% and 128% respectively since the start of the year, driven by safe-haven demand amid global fiscal deficits and economic uncertainty. Gold miners’ shares also gained in response.
- Nasdaq Extended Trading: Nasdaq plans to apply for regulatory approval to expand U.S. stock trading to 24 hours daily, five days a week, starting in late 2026. The proposal aims to increase market access but raises concerns about liquidity, volatility, and operational challenges.
- Congress Stock Ban: A GOP-led effort to force a House vote on banning stock trading in Congress faces likely failure as Democrats push to include the president and vice president in the ban, fracturing bipartisan support. Differences between Republican and Democratic proposals have slowed momentum and made agreement harder to reach.
- Inflation and Wages: Since 2020, overall prices have increased about 25%, more than double the previous five years’ inflation. While wages have generally kept pace, gains are uneven, favoring higher-skilled workers and certain industries, contributing to weak consumer confidence.
Earnings Spotlight
Planning Points
Retirement Savings and Benefits Updates for 2026
Each new year brings rule changes that affect retirement savers and retirees. For 2026, several key limits and benefits are adjusting:
IRAs
- Contribution limit increases to $7,500
- Catch-up contribution: $1,100 for those age 50+
Employer Plans (401(k), 403(b), etc.)
- Standard contribution limit: $24,500
- Catch-up contribution (age 50+): $8,000
- Enhanced catch-up (age 60–63): up to $11,250, if the plan allows
Health Savings Accounts and Flexible Spending Accounts (HSAs and FSAs)
- Individual contribution limits: $4,400 (HSA) and $3,400 (FSA)
- Family contribution limit: $8,750 (HSA)
- Dependent care FSA contribution limit: $7,500 (up from $5,000)
- HSA catch-up contribution: $1,000 for those age 55+
Social Security Updates
- Benefits increase by 2.8% ($56/mo) due to cost-of-living adjustments (COLA)
- Claiming age continues to affect lifetime benefit amounts
Medicare Overview
- Medicare premiums and deductibles increase
- Higher-income beneficiaries may face larger income-related surcharges
- Some Medicare Advantage plans are reducing benefits and raising costs
- Medicare Advantage open enrollment runs January 1–March 31, giving beneficiaries a window to switch Advantage plans or return to Original Medicare.
New Senior Tax Deduction
- Temporary $6,000 tax deduction for individuals age 65+
- $12,000 for married couples filing jointly
- Subject to income limits
Staying informed on these annual updates can help avoid surprises as retirement rules and benefit programs change.
Summary
Over the next two weeks, investors will closely watch holiday retail data and energy prices for signals on consumer sentiment. Attention will also turn to the upcoming CPI inflation report, which could influence interest rate expectations. We hope you had a great holiday season!
Footnotes
- U.S. stocks muted after S&P 500 scales record close (Investing.com)
- U.S. economy grew 4.3% in the third quarter, crushing estimates (Investing.com)
- Here’s the inflation breakdown for November 2025 — in one chart (CNBC)
- Christmas gift at the pump: Gas prices hit 4-year low for holiday travelers nationwide (FOX)
- As Trump accounts debut for kids, some experts say the government should focus on retirement savings next (CNBC)
- Gold and silver prices soar to new highs as the yellow metal reemerges as a hedge (CNBC)
- The Markets Never Sleep, Should Trading? (Nasdaq)
- Why the latest effort to ban stock trading in Congress is falling flat (BI)
- Everyday items cost more than ever—how much prices have risen since 2020 (CNBC)
