Rate Cuts, Market Jitters, and the Coming Wealth Transfer
Market Recap for the Week of December 8, 2025
The Federal Reserve once again cut its benchmark interest rate by 0.25%. Stocks initially rallied on the news, but those gains faded by Friday. For the week, the S&P 500 finished down 0.71%.
The U.S. dollar index also slipped roughly 1% in the days following the cut—an expected reaction, since lower rates tend to reduce foreign demand for U.S. government bonds.
On the economic front, jobless claims rose in the first week of December, adding to signs that the labor market is finally cooling. The official unemployment rate remains at 4.4% as of the latest available data from September. However, because data collection has been delayed due to the lingering effects of the government shutdown, the real unemployment rate could be higher today.
Another data point, ADP’s private-sector report showed a loss of 32,000 jobs in November, reinforcing the picture of a slowing employment environment.
“The Federal Reserve cut rates again, as signs of a cooling labor market continue to emerge.”
Chart of The Week
This week’s chart, courtesy of Apollo Asset Management, highlights a striking trend: Americans aged 70 and older now hold a record share of the nation’s wealth.
For nearly two decades before the financial crisis, this group held about 20% of U.S. household wealth. Today, that share has climbed to roughly 30%.
One major implication: a significant wave of inheritances is likely over the coming years, which could reshape household finances, investment flows, and the broader economy.
The commentary in this blog is for informational purposes only and should not be taken as personalized investment advice
Sources: Federal Reserve, Apollo Chief Economist
