S&P 500 Posts Strongest Monthly Gain Since 2020

The S&P 500 achieved its best monthly gain since 2020, closing at a record high. Multiple reports confirmed this market performance, highlighting a robust period for U.S. equities. E-commerce sector mergers and acquisitions increased 12.8% year-over-year in 2025, reaching 97 transactions, the highest since 2021.

Online spending during the 2025 holiday season, from November 1 to December 31, rose 6.8% year-over-year to a record $257.8 billion.

Consumers spent a record $20 billion on buy-now-pay-later services during the 2025 holiday season. This occurred despite dwindling savings, persistent inflation, and rising debt levels. Above-target inflation and slow job growth have contributed to record-low consumer sentiment.

One report noted that even as people absorb increases in gas prices, the rapid rises create a sense of whiplash, exacerbating negative feelings.

The strong stock market performance comes amid these economic pressures. Apple earnings are scheduled for release, which could influence market movements. Reports indicate that e-commerce sales continue to set records despite broader economic challenges.

One source questioned how this spending persists given the financial strains on consumers. The combination of surging online retail activity and stock market gains contrasts with low consumer confidence. Inflation remains above target levels, while job growth has slowed.

Gas price increases, described as record-breaking in their speed, are impacting public mood. Even those able to afford the hikes feel the effects through diminished sentiment. The 2025 e-commerce M&A activity marked a significant uptick, signaling renewed interest in the sector.

Holiday online dollars spent reached unprecedented levels, driven partly by deferred payment options. Overall, the U.S. share market's recent strength stands out against a backdrop of economic headwinds. Consumer behavior shows resilience in spending, particularly online, but sentiment indicators suggest underlying concerns.

One report summarized the situation as featuring above-target inflation, slow job growth, and record-low consumer sentiment. This mix presents a complex picture for the economy as of early 2026.