Weekly Talking Points for Financial Advisors (12/15/25)

Read the highlights of this week's commentary from Helios:

• The Federal Reserve cut interest rates by 25 basis points, its third cut of 2025, but delivered a surprise in its updated economic projections. The "dot plot" now indicates policymakers expect just one rate cut for all of 2026, a dramatic pivot that signals to investors the Fed believes rates need to stay elevated to ensure inflation remains fully contained.
• Initial jobless claims jumped to 236,000 for the week, overshooting economist estimates of 220,000. The unexpected softness undermines the "re-accelerating economy" narrative and validates the Fed's decision to cut rates now, even as officials project a slower pace of easing ahead.
• The stock market stumbled at the end of the week, as the 30-year Treasury yield surged above 4.85%. Rising long-dated yields steepen the yield curve and raise the discount rate applied to future cash flows, unleashing downward pressure on valuations, especially for growth-sensitive sectors like technology that depend on distant earnings.

Want to learn more about Helios Quantitative Research? Click Here to schedule a meeting with one of our representatives!