As 2025 draws to a close, global stock markets stand at a crossroads: strong annual gains meet rising uncertainties over rates, valuations and economic data. This December could mark either a powerful push to new all-time highs or a sharp, unexpected pullback — depending on how central banks, macro signals and investor sentiment align. In this analysis we dig into historic December seasonality, recent analyst forecasts and key risk triggers to map out what’s really in stock for the final weeks of the year.

December has an almost mythical reputation in the stock markets. Moreover, this December comes at a particularly interesting time. The US S&P 500 index is up around 17% after a tougher year, Wall Street is entering the final month with expectations that the Fed will cut rates, and at the same time a possible overheating of technology titles around artificial intelligence is being addressed. What can we expect from this December, how does it fit into historical context, and what do the…