This Weekly Financial Markets Update reviews the top market headlines: Consumer Inflation Steady in December, Existing Home Sales Finish 2025 on a Positive Note, Solid U.S. Retail Sales Growth in November
  • Core CPI rose 2.6% in December on a year-over-year basis
  • U.S. existing home sales increased 5.1% in December
  • U.S. retail sales rose 0.6% in November

Top Three Market Headlines

Consumer Inflation Steady in December: The U.S. Bureau of Labor Statistics reported last week that the all-items Consumer Price Index (CPI) rose at a 0.3% monthly pace in December. On an annual basis, prices rose 2.7%, unchanged from the rate reported in November. The core CPI, which excludes food and energy prices, rose 0.2% on the month and 2.6% year-over-year, the latter also matching the prior month's reported rate, which was the slowest increase since March of 2021. The 2.6% average increase in core CPI over the final two months of 2025 was a deceleration from an average of 3.1% in Q3.

Existing Home Sales Finish 2025 on a Positive Note: Sales of previously owned homes in the U.S. rose to a seasonally adjusted annualized rate of 4.35 million units in December, according to the National Association of Realtors (NAR). This was a 5.1% increase from November and the strongest monthly pace in nearly three years. According to the report, monthly sales rose in all four key regions of the U.S. (Northeast, Midwest, South, and West). The NAR's Chief Economist attributed the late-year strength to lower mortgage rates and slower home price growth.

Solid U.S. Retail Sales Growth in November: Sales at U.S. retail and food service establishments rose 0.6% in November from the prior month, the fastest pace in three months, according to the U.S. Census Bureau. According to the report, which had been delayed by the U.S. government shutdown, solid sales gains in November occurred in autos, building materials, and discretionary categories like hobbies and apparel, while restaurant spending also improved. Economists noted that the report signaled resilient consumer demand, particularly among higher-income households, despite a softer labor market.

As of January 16, 2025 Week Quarter-To-Date Year-To-Date One-Year
MSCI All Country World 0.35% 2.36% 2.36% 24.10%
S&P 500 -0.36% 1.44% 1.44% 18.39%
Russell 2000 2.05% 7.92% 7.92% 19.74%
MSCI EAFE 1.40% 3.45% 3.45% 34.46%
MSCI Emerging Markets 2.26% 5.78% 5.78% 42.31%
FTSE NAREIT Equity 2.90% 4.62% 4.62% 7.55%
Bloomberg Commodity 1.38% 3.72% 3.72% 13.58%
Bloomberg U.S. Aggregate -0.14% 0.01% 0.01% 7.31%

US Bureau of Labor Statistics 1/13/2026, WSJ 1/14/26, National Association of Realtors 1/14/2026, US Census Bureau 1/14/2026. Data from Morningstar Direct and FactSet. Returns for periods greater than one year are annualized. Investment advisory services are offered by Gallagher Fiduciary Advisors, LLC ("GFA"), an SEC registered investment advisor that provides retirement, investment advisory, discretionary and independent fiduciary services. Registration as an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the SEC. GFA is a limited liability company with Gallagher Benefit Services, Inc. as its single member. GFA may pay referral fees or other remuneration to employees of Arthur J. Gallagher & Co. or its affiliates or to independent contractors; such payments do not change our fee. Neither Arthur J. Gallagher & Co., GFA, their affiliates nor representatives provide accounting, legal or tax advice. GFA does not express an investment opinion regarding any specific commodity, sector or individual security. Unless otherwise expressly noted, the contents of this communication do not constitute securities or investment advice, nor should this communication be construed as an opinion regarding the appropriateness of any investment. The information provided cannot take into account all the various factors that may affect your particular situation, therefore you should consult your GFA consultant before acting upon any information or recommendation contained herein to discuss the suitability of the information/recommendation for your specific situation.