At the same time, the 10-year Treasury yield climbed to about 4.20%, reflecting expectations that interest rates may stay elevated into early 2026. The Federal Funds Rate stood near 3.7%, while inflation was last reported at 2.74%. Real GDP growth remained firm at roughly 4.3%, though markets continue to price in slower momentum ahead. Oil (CL) rose to $57.29 per barrel, gold (XAUUSD) eased to $4,332, and Bitcoin (BTC) traded near $91,000 as risk appetite stayed balanced.
After the market recap, focus turned to Tesla (TSLA), which reported weaker fourth-quarter deliveries. Tesla delivered about 418,000 vehicles during the quarter, down roughly 16% from a year earlier and marking a second straight annual decline. The slowdown followed a strong third quarter, when many buyers rushed to purchase vehicles before a $7,500 U.S. tax credit expired on October 1.
Tesla does not report sales by region, though company filings show the U.S. accounts for close to half of revenue. As a result, softer domestic demand had a meaningful impact on results. Competition also intensified throughout 2025, with pressure from BYD (BYDDF) and traditional automakers, while overall EV growth cooled. In response, Tesla introduced lower-priced versions of the Model 3 and Model Y, though those models offer shorter range and fewer features.
Even so, Tesla shares rose modestly in early trading and finished 2025 up about 18.6%. Investors continue to focus on longer-term initiatives tied to AI, robotaxis, and humanoid robots, despite Tesla’s robotaxi service remaining limited to Austin and San Francisco. Meanwhile, investor Michael Burry said this week that while he still views Tesla as overvalued, he is not currently short the stock.
Looking ahead, investors will turn their attention to early January data releases and fresh guidance from economists and company executives. Markets will watch for updates on inflation trends, labor conditions, and interest rate expectations as 2026 begins. Comments from Federal Reserve officials could shape near term sentiment, especially with bond yields near recent highs.
In addition, earnings season will begin to come into focus, with investors looking for confirmation that corporate profits can hold up amid slower growth and higher borrowing costs. AI-related spending trends, memory demand, and capital investment plans remain key areas of interest.
The calendar becomes more active in the first full week of January, with several well known companies set to report earnings and a steady lineup of ex dividend dates across financials, technology, and defensive sectors.
Several large companies will trade ex dividend starting Monday.
