Global equity markets experienced heightened turbulence in late December 2025, with major indices swinging more than 3% in a single week. Despite the instability, analysts identify strategic entry points in technology, energy, and emerging markets.
- S&P 500 recorded a weekly intraday range of 5.8 percentage points in late December 2025
- VIX reached 28.4, the highest level in 14 months
- Nvidia (NVDA) saw a 14% surge followed by a 9% decline in two days
- Brent crude fell 6%, weighing on energy stocks like Exxon Mobil (XOM) and Chevron (CVX)
- MSCI Emerging Markets Index rose 2.3% during the week of December 8–12
- U.S. 10-year Treasury yield climbed to 4.82% over four days
A sharp spike in market volatility marked the final days of December 2025, as the S&P 500 recorded its largest weekly intraday range since mid-2023, fluctuating between a 2.7% gain and a 3.1% loss over five trading sessions. The CBOE Volatility Index (VIX) surged to 28.4, its highest level in 14 months, signaling increased investor anxiety amid shifting interest rate expectations and geopolitical tensions. The tech sector, particularly semiconductor firms, saw extreme price swings. Nvidia (NVDA) traded 14% above its 50-day moving average before retreating 9% in two days, reflecting divergent views on AI-driven growth sustainability. Meanwhile, energy stocks reacted sharply to a 6% drop in Brent crude oil prices, with Exxon Mobil (XOM) and Chevron (CVX) posting losses of 5.2% and 4.7%, respectively, over the same period. Despite the turbulence, certain segments offered compelling opportunities. The MSCI Emerging Markets Index rose 2.3% during the week of December 8–12, outperforming developed markets, driven by strong inflows into Indian and South Korean equities. India’s Nifty 50 gained 3.6% in the week, boosted by robust corporate earnings and a weakening rupee, which enhanced export competitiveness. Market participants are closely monitoring U.S. Treasury yields, which climbed to 4.82% for the 10-year note—a 12-basis-point increase in four days—raising concerns about borrowing costs. However, some institutional investors view the current volatility as a tactical window to rebalance portfolios, particularly in high-quality dividend stocks and long-duration bonds.