US STOCKS: Morning Equities Roundup: IT, Materials, Travel Shares Underperform

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End-of-year favourability ratings from YouGov shows most major European heads of gov't/state struggling with negative public perceptions, although some have seen a more significant deterioration in the past year than others.

• Italian PM Giorgia Meloni's net favourability is the only leader to have seen her favourability improve over the year, finishing at -21 in December (the best among her peers), a marginal increase on the -25 recorded in March. The next general election is not due until December 2027 at the latest, but Meloni's relatively strong favourability at the midpoint of her term lends credence to the prospect of her being the first post-war Italian PM to serve out a full parliamentary term.
• At the other end of the scale are French President Emmanuel Macron and British PM Sir Keir Starmer, with net ratings of -63 and -59, respectively. While Macron, approaching the final full year of his second term, has recorded low favourability ratings all year, Starmer has seen his plummet from -26 in March amid rising public concerns about the state of the economy, prices, and immigration.
• Danish PM Mette Frederiksen's -29 net favourability is still strong by regional standards, but the decline from -3 in April could be a cause for concern with the next general election having to be held by 31 Oct at the latest.
• German Chancellor Friedrich Merz does not face any direct electoral challenge in 2026, but the decline in his favourability from -14 shortly after taking office in June, to -44 in Dec comes with parties of his governing 'grand coalition' facing challenges from the far-right Alternative for Germany in various state elections in 2026.
• Spanish PM Pedro Sanchez holds a net favourability of -36, a relatively robust rating as he enters his ninth year in office amid sexual misconduct and corruption scandals affecting his centre-left PSOE. 

Chart 1. Favourability Rating: Do you have a favourable or unfavourable opinion of the following? [Leader of respondent country] Net favourability 

Source: YouGov. Latest fieldwork 1-16 Dec. 

Major equity indexes are weaker on the last trading day of 2025, yet not far from recent record highs: late October for SPX eminis (7,014.00) and Nasdaq (24,019.99), mid-December for the DJIA (48,886.86).

• Currently, the DJIA trades down 161.83 points (-0.33%) at 48206.14 (+13.28% YoY), S&P E-Mini Futures down 26.5 points (-0.38%) at 6917.75 (+16.84% YoY), Nasdaq down 81.4 points (-0.3%) at 23337.76 (+20.86% YoY).
• Energy and Consumer Discretionary sector shares led declines in late morning trade, oil and gas refiners weighing on the former: EQT Corp -2.31%, Valero Energy -1.84%, Expand Energy -1.66%, Coterra Energy -1.34% and Phillips 66 -1.15%.
• Underperforming Discretionary stocks included: Starbucks -1.20%, Williams-Sonoma -1.13%, Best Buy Co -1.00%, Carvana -0.86% and Domino's Pizza -0.86%.
• Limited advances were reported in Health Care and Financial sector shares, pharmaceuticals and managed care buoyed the former: Molina Healthcare +3.23%, Elevance Health +0.62%, Centene Corp +0.62% and Viatris +0.48%.
• Services related shared supported the Financials sector: Franklin Resources +0.46%, Erie Indemnity +0.28%, FactSet Research Systems +0.25% and Berkshire Hathaway +0.13%.