Re-Print: USA COMPANY STOCKS DAILY PULSE REPORT, December 22, 2025
US Equities Maintain Strong Momentum Post-Fed Decision; Small Caps Lead as Tech and Financials Show Strength
Executive Summary:
On December 22, 2025, US equity markets demonstrated broad-based strength, with all four major indexes closing higher. The US Small Cap 2000 (US2000) led gains with a +1.08% advance, signaling renewed investor interest in smaller-cap stocks. The Dow Jones Industrials followed closely (+1.04%), while the S&P 500 and NASDAQ Composite also posted solid gains.
From a technical perspective, the index complex exhibits exceptionally strong momentum, with all four indexes showing positive INSTAT readings and a mean score of 94.75. The Dow Jones Industrials and S&P 500 both registered perfect INSTAT scores of 100, indicating optimal alignment across all timeframes and supporting a strongly bullish outlook for diversified equity allocations.
Among individual stocks, Applied Opt (AAOLO) surged 24.82% on strong AI-related data center demand, while Williams-Sonoma (WSM) led with a perfect INSTAT score of 100. Overall, 64.54% of the 643 companies analyzed posted positive INSTAT readings, reflecting a constructive technical environment for selective equity exposure.
The Federal Reserve’s December 10 rate cut continues to underpin market sentiment, with the central bank reducing the federal funds rate to 3.50–3.75% while signaling a more measured approach to future easing. Economic resilience, moderating inflation, and positive corporate earnings expectations support the ongoing equity advance.
Recommendation:
The synchronized strength across market caps and sectors favors maintaining strategic equity allocations. Ultra conservative portfolios may consider 60–70% equity exposure via index ETFs, while growth-oriented strategies can lean toward 80–90% weightings with selective positions in high-INSTAT names such as WSM, WFC, and VRTX.
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