Bonds & Stocks
The last full trading week of 2025 started with gains in both stocks and bonds as Wall Street geared up for key economic data that will help shape the Federal Reserve rate outlook. On the eve of the US jobs report, the S&P 500 rose amid speculation that a weakening labor market will pave the way for further policy easing that will keep driving corporate profits. While big tech rebounded, the group of smaller firms continued to push higher. Treasury yields dropped on bets the Fed will lower rates twice next year to support the job market even as inflation keeps showing signs of stickiness. A dollar slide helped lift precious metals like gold and silver.
Economy
Fannie Mae and Freddie Mac have added billions of dollars of mortgagebacked securities and home loans to their balance sheets in recent months, fueling speculation that they’re trying to push down lending rates and boost their profitability ahead of a potential public offering. The government-backed housing-finance giants increased their retained portfolios — the portion of bonds and loans they hold onto rather than sell to investors — by more than 25% in the five months through October, according to the latest figures. That’s lifted their combined positions to $234 billion, the most since 2021. Analysts estimate they could add as much as $100 billion more next year.
World
Canadian home prices dipped in November as the tentative momentum the market built through the middle of the year petered out heading into the colder months. The number of homes sold nationally fell 0.6% in November from the month before, according to data released Monday from the Canadian Real Estate Association. The benchmark price fell 0.4% to C$674,800 ($490,000). The series of interest rate cuts that started last year seemed to cause the Canadian housing market to pick up over the summer, albeit from very low levels. But continued trade tensions with the US, Canada’s biggest trading partner, have weighed on buyers’ confidence. Canada’s housing market tends to slow as winter approaches, and November saw the pace of new listings fall 1.6% from the previous month, faster than the decline in sales. That left the market marginally tighter, although prices still declined.