Equity markets closed higher on Friday, extending modest gains from the previous session.
Technology stocks spearheaded the advance, with the Nasdaq outperforming both the S&P 500 and Dow Jones. Smaller companies also rallied strongly, pushing the Russell 2000 sharply higher. Among sectors, technology, industrials, and healthcare were top performers, while consumer staples and utilities lagged.
In bond markets, Treasury yields edged higher across the curve, with the 10-year yield hovering around 4.15%, near multi-year highs. This continues to support the appeal of bonds for income-focused investors.
Weekly market overview
For the week, equities posted solid gains, buoyed by easing inflation data and upbeat earnings from Micron Technology. These factors helped offset concerns about stretched valuations in technology and AI-related stocks.
Treasury yields moved slightly higher, reflecting uncertainty over the Federal Reserve’s policy outlook. With the holiday season approaching and trading volumes thinning, markets are expected to remain subdued into year-end. Nevertheless, both equity and bond markets remain firmly positive year-to-date, reinforcing investor confidence as attention turns to 2026.
Asian markets start the week strong
Asian equities advanced on Monday, driven by technology and semiconductor shares amid renewed optimism around artificial intelligence.
Japan’s Nikkei and South Korea’s KOSPI surged about 2%, while Chinese stocks edged higher after the central bank kept key lending rates unchanged, signalling policy stability. Regional sentiment was supported by Wall Street’s firm performance during holiday trading.
US futures and currency moves
US equity futures traded higher this morning, with S&P 500 and Nasdaq futures up around 0.4–0.5%, boosted by strong chip forecasts and Oracle’s TikTok-related developments. Softer US inflation data eased rate-cut expectations, underpinning Treasury yields and broader market sentiment ahead of a holiday-shortened week.
The US dollar held steady in Asian trade, supported by recent gains and caution ahead of December’s inflation data, which could influence Federal Reserve policy. The euro remained little changed, reflecting muted risk appetite amid geopolitical tensions and a firm dollar backdrop.
European equities hit record highs
European markets closed higher on Friday, with the STOXX 50 up 0.6% and the STOXX 600 reaching a record high. Gains were driven by expectations of US rate cuts and fading bets on ECB tightening.
Key movers included ASML (+1%), Novo Nordisk (+2%), Rolls-Royce (+2.7%), Prosus (+2.3%), and Roche (+2.2%), while Puma (-1%) and Adidas (-3%) underperformed.
Commodities update: Oil prices edge higher
Oil prices rose in early Asian trade as reports suggested the US was pursuing a third Venezuelan oil tanker, raising supply disruption fears. Brent and WTI gained 0.6%, supported by concerns over renewed Israel-Iran tensions despite recent losses driven by oversupply worries and potential Russian supply returning.
Equities on the move
Here are some of the most notable corporate updates and analyst actions influencing share prices.
Tesla
The Delaware Supreme Court reinstated Elon Musk’s 2018 Tesla share-based pay package, valued at nearly $140 billion, overturning a previous ruling that blocked it.
Meta
Board member Dina Powell McCormick resigned after eight months but may continue advising on investments and strategy. Meta does not plan to fill her seat.
Pharma sector
President Trump and nine major drugmakers agreed to cut prices for Medicaid and cash-pay patients, offering up to 70% discounts and committing $150 billion in US investments.
Moore Threads
Shares rose 2% after unveiling new GPUs for gaming and AI, signalling China’s push for domestic chip development.
SpaceX
Morgan Stanley is a leading contender to manage SpaceX’s potential 2026 IPO, which could exceed $25 billion.
Analyst ratings
Below is a summary of recent analyst recommendations and outlooks for key companies.
- Goldman Sachs: Predicts global equity bull market broadening in 2026, with 13% price returns.
- JPMorgan: Downgraded Lockheed Martin to Neutral; favours Boeing and GE Aerospace.
- Wells Fargo: Cut ratings on major US chemical firms due to weak demand.
- Bernstein: Maintained Outperform on Nvidia with $275 price target.
- Citizens: Upgraded Stryker Corp to Market Outperform.
- Wedbush: Downgraded Lyft to Underperform, citing AV disruption risks.
- Goldman Sachs: Initiated coverage on Technip Energies with a Buy rating.
Upcoming economic data
This week’s calendar is light due to the holiday period. Key US releases include Q3 GDP revision, durable goods orders, corporate profits, industrial production, and consumer confidence.
Europe will see car registration data and GDP updates, while Asia focuses on RBA and BoJ minutes, Japan’s inflation, industrial production, and retail sales.
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