MTC Market Insights

January 5, 2026

Fundamentals Prevailed

Key Takeaways

• Uncertainty tied to tariffs, a shutdown, and tax-policy defined much of 2025, yet the global economy was resilient, and investors leaned into longer-term growth prospects fueled by artificial intelligence (AI) related investment.

• After some turbulence in Q4, U.S. equities found their footing and remained near record highs by year-end.

• The October government shutdown created an “economic data blackout,” yet economic fundamentals held firm, while the Fed pivoted to modest easing with successive cuts.

Sources:

• 1 FactSet