Reviewed by Gotrade Internal Analyst
Jakarta, Gotrade News - The US stock market kicked off the final full trading week of the year on a wobbly note. The dip was mainly driven by a sell-off in the tech sector right before some crucial labor data drops.
Key Takeaways
- Major ETFs like SPY and QQQ took a hit due to weakness in the tech sector.
- Bank of America and Citi have split views on where the S&P 500 is heading in 2026.
- The market is on edge waiting for nonfarm payrolls and CPI inflation data to signal the economy's direction.
The SPDR S&P 500 ETF Trust closed down 0.15%, while the Invesco QQQ Trust slid 0.50% in yesterday's trading. The tech and AI sectors were the main culprits dragging the market down, while value stocks actually showed some strength.
Big Banks Clash on 2026 Predictions
Bank of America Corporation is playing it safe, predicting the S&P 500 will only hit 7,100 in 2026. According to strategist Savita Subramanian in her TipRanks report, big companies might be at risk of a significant valuation squeeze.
On the flip side, Citigroup Inc. is way more bullish, targeting the index to reach 7,700 next year. Their strategists mentioned in a research note that the AI hype train and lower interest rates will keep driving the market momentum forward.
All Eyes on Economic Data and The Fed
Fed Governor Stephen Miran threw out a warning that keeping interest rates too tight could unnecessarily hurt the labor market. Miran explained in his speech that current inflation data is actually reflecting supply imbalances from the past, basically lagging behind reality.
Investors are now glued to the screen for Tuesday's nonfarm payrolls and Thursday's CPI inflation data. These numbers are going to set the tone for future economic policies that could directly impact your investment strategy.
Reference:
- TipRanks, Stock Market News Review: SPY, QQQ Wobble on Tech Selloff ahead of Key Nonfarm Payrolls Data. Accessed on December 16, 2025
- Featured Image: Shutterstock
Disclaimer
Gotrade is the trading name of Gotrade Securities Inc., registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
