Morning Market Preview — December 31, 2025
U.S. equity futures are mixed this morning as markets enter the final trading session of 2025. With liquidity thin and major catalysts behind us, price action remains selective as investors position for the January reset.
Market Setup
U.S. equity futures are modestly mixed this morning as markets enter the final trading session of 2025. Liquidity remains thin, volatility is compressed, and positioning reflects year-end rebalancing rather than fresh conviction. With major macro catalysts behind us, price action is expected to stay selective and technical.
Want the full picture?
Today’s Daily Market Recap includes deeper macro context, biotech movers, and actionable takeaways — available to paid members only.
👉 Subscribe to Market Clarity to get full daily recaps delivered every evening.
https://market-clarity.ghost.io/#/portal/signup
Macro & Rates
Treasury yields are stable after a quiet final week of trading
Markets close out the year still pricing gradual rate cuts in 2026
Inflation trends remain constructive, though confirmation will be data-dependent early next year
Equities
Large-cap leadership remains intact, led by select technology and growth names
Participation continues to narrow as investors avoid aggressive new risk
Defensive and quality factors remain supported into year-end
Biotech & Health Care
Biotech trading is muted as investors defer new positioning into January
Focus remains on balance-sheet strength and upcoming 2026 catalysts
Stock-specific setups continue to outperform broader group movement
What to Watch
Low-volume price distortions into the close
Institutional positioning shifts ahead of the January reset
Early sector leadership signals for Q1 2026
