Market Dynamics in 2025

The early market performance of 2025 has been slow due to multiple holiday weeks affecting trading activity. Investors are awaiting key data releases, including jobs and inflation statistics, which could catalyze a more active trading environment. Notably, the treasury market has drawn attention as rates have increased, with the 10-year treasury yielding 4.7%, a considerable rise from 3.7% in September. This situation, alongside the new administration approaching, raises concerns about the future of government spending and the potential for inflationary pressures, prompting many to speculate about the Fed's next steps regarding interest rates.