Even if the data is still somewhat distorted by special effects following the 43-day government shutdown, the CPI report provided relief. The figures confirmed that the disinflationary trend is gaining momentum, which makes further interest rate cuts likely in 2026 and should generally provide a tailwind for the stock market.<\/p>\n\n\n\n
Signs of weakness on the labor market<\/h2>\n\n\n\n
In addition to the inflation data, the US labor market was also in the spotlight last week, albeit with less encouraging news. The labor market reports for October and November published retrospectively on Tuesday showed a significant dip: only 64,000 new jobs were created in October, and there was even a decline of 105,000 jobs in October. At the same time, the unemployment rate unexpectedly rose from 4.4 % to 4.6 %, reaching its highest level for over four years.<\/p>\n\n\n\n
The combination of low job growth and more unemployed signals a cooling of the long robust labor market. Even if special effects from the government shutdown (which may have distorted some figures) are taken into account, the data signal a slowdown in economic momentum. Wage growth was also more moderate and, at an annual rate of just over 3 %, was the lowest since 2021.<\/p>\n\n\n\n
Dow Jones Transportation Index impressively strong<\/h2>\n\n\n\n
In chart terms, the Dow Jones remains clearly in bull mode. After the all-time highs of December 11 and 12, the Dow corrected a few points, but is still trading above the EMA 20.<\/p>\n\n\n\n The Dow Jones Transportation Average has been particularly strong recently. Although the transportation index has not yet risen to a new all-time high, it has been able to build up significant relative strength compared to the Dow Jones Industrial Average since the beginning of November. This can be seen from the relationship line below the chart (below). Here, the Dow Jones Transportation Average is divided by the Dow Jones Industrial Average.<\/p>\n\n\n\n The fact that the transportation index is showing relative strength is a positive sign: Transportation stocks are considered to be particularly sensitive to the economy. If they outperform the Dow (industrial index), this indicates robust demand and an active flow of goods. At the same time, the outperformance acts as a confirmation of the upward trend in the market as a whole and shows that the bull market is broad-based.<\/p>\n\n\n\n![\"Line](\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/12\/image-6-1024x601.png\")
![\"A](\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/12\/image-7-1024x757.png\")