Although many analysts expected that this Friday’s day would be a transitional session in the absence of relevant data to guide investors, the market has once again contradicted the experts’ predictions. After starting the day with gains of less than half a percentage point and after registering , he touched 17,000 points in the early stages of the day.
The strength of Wall Street overnight, despite the new drop in the price of Oracle shares generating nervousness in the technology sector, does not prevent the Asian and European stock markets from trading higher to close on the second day of December.
Until Thursday, the Spanish selective accumulated a revaluation of 1.1% and chained five consecutive days of gains. For the year, the Ibex recorded a return of 45%, being the best index on the Old Continent, well ahead of the FTSE MIb, which gained 27%, and the FTSE 100 of London, which posted gains of 18%.
This Friday, the Dax Xetra rises 0.7% while the FTSE 100 London gains 0.6% while the Cac in Paris rises 0.5%.
“The momentum should continue through the end of the year,” explains Gina Bolvin, president of Bolvin Wealth Management Group, Bloomberg reports. “With rate cuts underway, a new Fed chair about to take office, and earnings trending higher, the bull market looks poised to extend into 2026. As more companies adopt AI, participation should broaden and sectors beyond the Magnificent Seven could begin to show strength,” he adds.
Financial markets have moved quickly in recent hours to find their footing this week, after the Federal Reserve cut interest rates but offered a less hawkish outlook than expected, and the return of concerns about the AI bubble added to investor stress. The Dow and Russell 2000 (small company index) reached new highs, but the Nasdaq fell.
The analysts of MacroYield explain that “attention is focused on some of the important macroeconomic data that will be published next week in the US, among which the employment and inflation data for November stand out.” “Both references are key for the Fed’s expectations and for assessing the relative importance of the risks associated with each of them. At this time, the inflationary risk seems greater to us than the recessionary one.”
The Nikkei 225 in Tokyo rises 1.4%, while Softbank Group shares, which form the mars of the Japanese selective index, gain 6% after Bloomberg News reported that it is considering acquiring the American data center company Switch. The Japanese Topix is trading at all-time highs, with financials buoyed by bets that the Bank of Japan’s interest rate hike next week is all but certain.
Meanwhile, the Chinese stock market rose somewhat less at the close, after the country’s leaders indicated that they will maintain economic support, but will refrain from increasing stimulus next year.
The S&P 500 e-mini futures remain unchanged and the Nasdaq futures fall 0.2%, in a context of uncertainty in the markets after the collapse of the. The company’s huge spending and weak forecasts raised questions about how quickly big investments in AI will pay off.
“Oracle announced disappointing results, along with increased investment in data centres, raising fresh concerns about AI spending, with investors questioning whether the high level of investment will deliver the required return,” Westpac analysts wrote in a note, Reuters reports.
In Thursday’s trading, technology stocks received some support after Broadcom on Thursday projected first-quarter revenue above Wall Street estimates. However, gains were tempered after the company announced its margins would fall due to a higher AI revenue mix, dragging its shares down 5% in the extended session.
Overnight, the dollar weakened further after jobless claims data showed the number of Americans filing new claims for jobless benefits saw the biggest increase in nearly four and a half years.
Data is typically volatile this time of year, and the four-week average of job applications suggested labor market conditions remained stable.
Markets are forecasting at least two rate cuts next year after the Fed chair, who “doesn’t believe a rate hike is anyone’s base case.”
In the fixed income market, the 10-year US Treasury bond yield stands at 4.151%, an increase of 1.2 basis points compared to final levels in the United States.
Brent crude oil rose 0.5% to $61.59 as investors focused their attention on peace talks between Russia and Ukraine, having previously risen on news that the United States had seized an oil tanker off the coast of Venezuela.
On Thursday, the United States imposed new sanctions against Venezuela, imposing restrictions on three nephews of President Nicolás Maduro’s wife, as well as six oil tankers and shipping companies linked to them.
Precious metals markets retreat from new highs. Gold remains stable at $4,281.91, while silver retreats from all-time highs, falling 0.6% to $63.17.
Cryptocurrency markets remain under pressure, with Bitcoin falling 0.4% to $92,571.96 and Ethereum down 0.6% to $3,231.69.
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